Not upheld: charges and interest classification; quasi-cash transaction treatment complaint against Santander UK Plc

Decision detail

Summary

Ms A complained that Santander incorrectly treated her cryptocurrency investment payments as quasi-cash transactions, resulting in unexpected fees and interest charges despite her account's 0% promotional rate for purchases. Santander maintained that the payments met the definition of quasi-cash transactions under the account terms, which clearly set out that such transactions attract 2.2% monthly interest and a 3% fee. The ombudsman upheld Santander's position, finding that cryptocurrency purchases are reasonably similar to other quasi-cash examples and that the charges were clearly documented in the account terms. The ombudsman also rejected Ms A's argument that Santander was required to provide additional explanation under FCA rules at the point of transaction. Santander's goodwill offer of £141 was deemed fair, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that cryptocurrency purchases are reasonably classified as quasi-cash transactions given their similarity to other quasi-cash examples (gambling, foreign currency) involving currency-like assets with fluctuating value. The account terms clearly set out that cash transactions attract 2.2% monthly interest and a 3% fee, and these terms were transparent and accessible to Ms A. The ombudsman rejected the argument that CONC 4.2.5R required Santander to provide additional explanation at the point of transaction, as this rule applies only to entering into regulated credit agreements, not ongoing transaction-by-transaction disclosures when terms are already clearly documented.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website