Upheld: service failure - poor communication during KYC review and provision of incorrect information complaint against Santander UK Plc

Decision detail

Summary

Miss K complained about Santander's handling of a KYC review initiated in July 2025. Although Miss K promptly provided the requested documents on 11 August and the review was completed on 12 August, Santander failed to inform her of completion. When Miss K called for an update on 18 August, a Santander agent incorrectly told her she was being investigated for fraud and that her documents had not been reviewed, causing significant distress two days before the account restriction deadline. Santander later confirmed the review had been completed and approved. The ombudsman upheld the complaint, finding Santander's failures in communication and provision of incorrect information caused distress warranting £200 compensation, but rejected Miss K's claim for lost earnings due to insufficient evidence of direct causation.

The Ombudsman's reasoning

The ombudsman found that while Santander was entitled to conduct KYC reviews and request the information it did, it failed in its service delivery by not informing Miss K when the review was completed despite knowing the consequences of non-compliance and her personal circumstances. The incorrect statement that Miss K was being investigated for fraud, made two days before the deadline, caused significant distress. However, the ombudsman rejected the claim for lost earnings as there was insufficient evidence this was a direct result of Santander's error rather than Miss K's personal circumstances. The ombudsman determined £200 compensation was fair and in line with FOS recommendations for such service failures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website