Upheld: irresponsible lending / failure to monitor and intervene on persistent overdraft use complaint against Santander UK Plc
Financial Ombudsman decision DRN-6308884 of 2026-04-27T00:00:00+00:00. irresponsible lending / failure to monitor and intervene on persistent overdraft use complaint against Santander UK Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6308884 |
|---|---|
| Decision date | 2026-04-27T00:00:00+00:00 |
| Firm | Santander UK Plc |
| Product | current account with overdraft facility |
| Claim type | irresponsible lending / failure to monitor and intervene on persistent overdraft use |
| Outcome | Upheld |
| Remedy | Santander must remove all interest, fees and charges applied to the overdraft from September 2020 onwards. If this results in no outstanding balance, any overpayments should be returned to Miss P with 8% interest from the date paid until settlement. If a balance remains, Santander must arrange a suitable repayment plan. Once settled, Santander must remove adverse credit file information from September 2020 onwards. |
Summary
Miss P complained that Santander UK Plc continued to provide her with an overdraft facility despite her persistent reliance on it, causing her to incur over £2,000 in interest and charges. Miss P's account showed consistent overdraft usage from December 2016, with no credit balance for 12 consecutive months from September 2019 to September 2020, indicating financial difficulty. The ombudsman upheld the complaint, finding that Santander failed to adequately monitor Miss P's overdraft use and intervene in accordance with CONC regulations, particularly after the account converted to an Everyday account in December 2019 when interest began accruing. Santander was ordered to remove all interest, fees and charges from September 2020 onwards and return any overpayments with interest, or arrange a repayment plan for any remaining balance.
The Ombudsman's reasoning
Overdrafts are intended for short-term emergency borrowing, not long-term reliance. CONC 5D.2 and 5D.3 require firms to identify and monitor repeat overdraft use and intervene when customers show signs of financial difficulty. Miss P's account showed no credit balance for 12 consecutive months from September 2019, indicating over-reliance on the overdraft. Although Santander attempted engagement, they did not adequately explain the consequences of non-engagement (suspension or reduction of facility) within a reasonable period (one month under CONC). Santander continued applying interest despite Miss P's clear financial difficulty, which was unfair. The firm benefitted from the interest and charges while Miss P suffered financial harm.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander UK Plc, all decisions | 14,445 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website