Partially upheld: service failure in international payment processing and communication complaint against Santander UK Plc

Decision detail

Summary

Mr M complained to Santander after two international payments (£8,000 and £45,000) for a property purchase took significantly longer than promised to arrive, causing him stress and uncertainty. Although an IBAN issue contributed to delays and Santander provided poor communication and misinformation, the ombudsman found that the primary causes of delay were beyond Santander's control, including mandatory regulatory screening processes and reliance on other financial institutions. The ombudsman upheld the complaint in part and determined that Santander's increased compensation offer of £600 was fair and reasonable for the communication and misinformation failures, rejecting Mr M's claim for £5,000.

The Ombudsman's reasoning

The ombudsman acknowledged that while Santander's service had deficiencies in communication and misinformation, the payment delays were primarily caused by factors beyond Santander's control, including the IBAN issue, legal and regulatory screening requirements, and reliance on other financial institutions. The ombudsman accepted that Santander's Terms & Conditions clearly set out their position on international payments and that they cannot be held liable for delays caused by payment detail issues or circumstances beyond their control. Compensation should reflect only the service failures in communication and misinformation, not the payment delays themselves.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website