Not upheld: termination of credit agreement / failure to accommodate vulnerable circumstances complaint against Santander Consumer (UK) Plc trading as Santander Consumer Finance

Decision detail

Summary

Mr G complained that Santander Consumer Finance unfairly terminated his vehicle finance agreement without properly considering his vulnerable circumstances arising from his partner's serious ill health and his caring responsibilities. The account had fallen into arrears with missed payments in January and February 2025, followed by a default notice on 1 March 2025. Although Mr G made some payments including larger lump sums later in 2025, the account never returned to a stable position, and Santander terminated the agreement on 4 November 2025 after allowing approximately eight months for remediation. The ombudsman acknowledged Mr G's vulnerability but found that the persistent pattern of missed payments and arrears made the agreement unsustainable, and that Santander had acted reasonably in exercising its right to terminate.

The Ombudsman's reasoning

The ombudsman acknowledged Mr G's vulnerable circumstances and the impact of his partner's serious medical condition on his ability to manage the agreement. However, the ombudsman found that despite recognising this vulnerability and expecting Santander to act with appropriate care, the overall conduct of the account showed a persistent pattern of missed payments and arrears that continued even after the default notice. Although Santander allowed approximately eight months for the position to be remedied rather than terminating immediately, the payment pattern remained inconsistent and arrears persisted throughout this period. The ombudsman concluded that it was therefore reasonable for Santander to terminate the agreement as it was no longer sustainable, and found no evidence that Santander failed to act fairly or declined a viable repayment arrangement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website