Partially upheld: service failure, administrative errors, incorrect arrears recording, poor communication complaint against Santander Consumer (UK) Plc
Financial Ombudsman decision DRN-6196870 of 2026-04-07T00:00:00+00:00. service failure, administrative errors, incorrect arrears recording, poor communication complaint against Santander Consumer (UK) Plc. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6196870 |
|---|---|
| Decision date | 2026-04-07T00:00:00+00:00 |
| Firm | Santander Consumer (UK) Plc |
| Product | car finance (fixed sum loan) |
| Claim type | service failure, administrative errors, incorrect arrears recording, poor communication |
| Outcome | Partially upheld |
| Remedy | Santander must: (1) confirm in writing that Mr L's agreement is closed and no further sums are owed; (2) formally notify Mr L that he can ignore any ongoing incorrect correspondence; (3) remove the £180 wear and tear charges already agreed to be waived; (4) pay Mr L a total of £200 for distress and inconvenience (£100 additional if the original £100 offer has already been paid, or £200 if the original offer has not yet been paid). |
Summary
Mr L complained about poor service when returning a financed car to Santander. After returning the vehicle in September 2025, Santander incorrectly recorded the account as in arrears due to a system error, issued default-style notices, and provided inconsistent information about the agreement closure process, causing Mr L concern about his credit file and requiring him to spend time resolving matters. Santander investigated and upheld the complaint, waiving £180 in charges and offering £100 compensation, but the investigator and ombudsman found this insufficient. The ombudsman upheld the complaint in part, ordering Santander to confirm the agreement closure, cease incorrect correspondence, and pay £200 total compensation for the distress and inconvenience caused.
The Ombudsman's reasoning
The ombudsman found that Santander made clear errors in administering the agreement, including incorrect arrears recording due to system error and providing inconsistent information. These errors would reasonably have caused concern about credit file implications and required Mr L to spend time resolving matters. The lack of early reassurance prolonged the distress. While Santander had already taken some steps to remedy the situation, the ombudsman considered the total impact warranted £200 compensation as proportionate to the nature and duration of the mistakes. No separate award for credit file damage was made as there was insufficient evidence of lasting detriment.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander Consumer (UK) Plc, all decisions | 911 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website