Upheld: poor service, inadequate advice, account closure handling complaint against Santander UK Plc

Decision detail

Summary

Mr B complained that Santander wrongly closed his current account in August 2025 following incorrect advice about an Edge account, resulting in missed mortgage payments, failed direct debits, and adverse credit file markers. Santander acknowledged poor service in not explaining the Edge account clearly and failing to identify that the account closure was already in process when Mr B called in August. However, the ombudsman found that the account closure was Mr B's own decision made online and could not have been prevented by better advice. The ombudsman upheld the complaint but agreed that Santander's compensation of £300 was fair and reasonable, as the impact was limited to one week and Santander cannot reopen the account or alter credit file markers applied by other financial services.

The Ombudsman's reasoning

While Santander made errors in its communications and failed to identify that the account closure was already in process, the ombudsman found that the account closure itself was Mr B's decision made online and not caused by Santander's errors. The key failure was that Santander's agent should have explained the implications of closure for upcoming payments, but this would not have prevented the closure. The impact period was limited to one week (19-26 August 2025) after which Mr B understood he needed a new account. Santander cannot reopen the account or alter credit file markers applied by other financial services. The ombudsman found the £300 compensation fair and reasonable given the limited scope of Santander's responsibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website