Partially upheld: account handling, poor communication, delays in fund release, POA acceptance and rejection complaint against Santander UK Plc

Decision detail

Summary

Ms S complained that Santander blocked her account after she received a large deposit (over £300,000), preventing her from accessing the remaining funds for almost five months. Living overseas, she arranged for a family member with Power of Attorney to attend a branch, but Santander initially accepted then rejected the overseas POA. The ombudsman found Santander was entitled to apply the block for fraud prevention but made mistakes in its handling, including poor communication and delayed offering of alternative verification options. The complaint was partially upheld with an order for additional £200 compensation (plus £50 already paid), while claims for POA costs and interest were rejected.

The Ombudsman's reasoning

The ombudsman accepted that Santander was entitled to place the account block to protect customer money and had legitimate concerns. However, the ombudsman found that Santander made mistakes in its handling: it initially accepted the overseas POA then rejected it, and it could have offered secure remote identification options earlier. The ombudsman rejected claims for POA costs (Ms S's choice) and interest (funds released when account closure was decided, not due to legal threat). The ombudsman found poor communication but considered the £200 additional compensation fair given the mistakes made and time/effort Ms S expended.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website