Partially upheld: unfair handling of default and delayed cancellation of repossession proceedings; adverse credit reporting complaint against Santander Consumer (UK) plc, trading as Santander Consumer Finance

Decision detail

Summary

Mr M entered a conditional sale agreement with Santander Consumer Finance for a £75,900 car in March 2022. Due to significant life events, he stopped making payments from July 2024 and Santander recorded a default and initiated repossession proceedings. Although Mr M made payment to clear arrears in February 2025, repossession proceedings were not cancelled until late June 2025. The ombudsman upheld the complaint regarding distress caused by the delayed cancellation but rejected the request to remove the default as it was accurate and fair reporting. Santander was ordered to pay £300 compensation.

The Ombudsman's reasoning

The ombudsman found that while the default was a fair and accurate reflection of Mr M's failure to meet payment obligations and was correctly reported to credit reference agencies, Santander acted unfairly by delaying cancellation of repossession proceedings until late June 2025, causing undue distress. The ombudsman upheld the complaint regarding this distress but rejected the request to remove the default as it was true and accurate reporting of a genuine default.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website