Not upheld: overdraft reduction and notification complaint against Santander UK Plc
Financial Ombudsman decision DRN-6070598 of 2026-04-20T00:00:00+00:00. overdraft reduction and notification complaint against Santander UK Plc. Outcome: Not upheld.
Decision detail
| Reference | DRN-6070598 |
|---|---|
| Decision date | 2026-04-20T00:00:00+00:00 |
| Firm | Santander UK Plc |
| Product | Overdraft |
| Claim type | overdraft reduction and notification |
| Outcome | Not upheld |
| Remedy | None ordered. The ombudsman noted that Mr C may apply for an overdraft increase in future and suggested he raise data rights concerns with the Information Commissioner's Office. |
Summary
Mr C complained that Santander reduced his overdraft without proper notification, causing financial difficulties, and that the decision was based on inaccurate third-party information. Santander had sent a letter dated 18 July 2025 notifying Mr C of the reduction effective 1 September 2025 to his correct address. The ombudsman found that overdrafts are repayable on demand and Santander was entitled to reduce it, and that reasonable notification had been provided. The complaint was not upheld, with the ombudsman directing Mr C to raise data rights concerns with the Information Commissioner's Office.
The Ombudsman's reasoning
An overdraft is repayable on demand, allowing the lender to reduce or remove it at any time without providing reasons. Santander provided reasonable notification by sending a letter to Mr C's correct address with advance notice of the reduction. The use of financial information during an underwriting review is typical and necessary for such reviews to be meaningful. Issues regarding incorrect credit file records and data rights breaches fall outside Santander's responsibility.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander UK Plc, all decisions | 14,445 | 22% |
| Overdraft, all decisions | 3,791 | 24% |
Source
Read the original decision on the Financial Ombudsman Service website