Not upheld: Fraud reimbursement (APP scams) complaint against Santander UK Plc

Decision detail

Summary

Mr T invested £15,100 in a Rent-to-Rent Agreement with firm S in April 2024, receiving monthly returns until January 2025 when they ceased. S subsequently entered administration. Mr T complained to Santander in July 2025 about the scam, and while Santander delayed its response, it eventually reimbursed Mr T the full loss (minus returns received) before the FOS Investigator completed their assessment. Mr T then requested interest on the reimbursed amount to compensate for the months he was without his funds. The ombudsman found that Santander's reimbursement was fair and reasonable and declined to award interest, as Santander had reimbursed the funds before the point at which interest would normally be calculated from (the Investigator's assessment date).

The Ombudsman's reasoning

The ombudsman found that Santander reimbursed Mr T before the FOS Investigator provided an assessment on the case. The ombudsman considered that interest should only be awarded from the date of the Investigator's assessment onwards, as this is the point from which the bank can fairly and reasonably be expected to reach an outcome. Since Santander reimbursed the funds prior to this point, it would not be fair or reasonable to award interest. The ombudsman acknowledged the complexity of determining whether S was an APP scam and that Santander acted proactively by reimbursing Mr T earlier than would have occurred had he waited for the Investigator's assessment. The ombudsman also noted that the majority of Mr T's distress resulted from the scammer's actions rather than Santander's handling, and that Santander had already apologised and paid £60 for handling shortcomings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website