Not upheld: arrears handling, receiver appointment, letter before action complaint against Santander UK Plc

Decision detail

Summary

Miss N complained that Santander UK Plc acted unfairly by issuing a letter before action while she believed she was still in a payment arrangement, and by appointing Receivers despite her contacting Santander within the 15-day notice period. The ombudsman found that Miss N's payment arrangement had ended on 9 September 2025, and although she contacted Santander on 7 October 2025 within the notice period, this contact did not result in a substantive new agreement being reached. The ombudsman determined that Santander acted fairly and proportionately in appointing Receivers after the notice period expired without a new arrangement being agreed. The complaint was not upheld, and the ombudsman clarified that subsequent actions by the appointed Receivers fall outside FOS jurisdiction.

The Ombudsman's reasoning

The ombudsman found that Santander acted fairly and proportionately in issuing the letter before action as it was informative, gave reasonable notice, and advised of consequences. Simply making contact within the 15-day period was insufficient; Miss N needed to reach a substantive new agreement. The phone call on 7 October 2025 did not result in such an agreement as further discussion was needed in a subsequent call that never occurred before the notice period expired. The ombudsman noted the mortgage is unregulated as a commercial buy-to-let transaction, so Miss N is not covered by residential mortgage borrower protections. The ombudsman also clarified that acts or omissions of the appointed Receivers fall outside FOS jurisdiction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website