Upheld: misinformation regarding joint account access rights and failure to place protective block on account complaint against Santander UK Plc

Decision detail

Summary

Mr B, acting as deputy for his mother Mrs B, contacted Santander to register deputyship and expressed concern that Mrs B's ex-partner (joint account holder) might withdraw funds from their joint current account. A Santander adviser incorrectly assured Mr B that the account was 'two to sign' and effectively 'useless' for transactions. Despite this assurance, the joint party withdrew £20,000 in May 2025. The ombudsman upheld the complaint, finding Santander provided materially incorrect information and should have placed a block on the account when the dispute was flagged, though the ombudsman could not determine ownership of the withdrawn funds as that is a civil matter. Santander was ordered to pay £600 compensation.

The Ombudsman's reasoning

The ombudsman found that while Santander was correct that a joint account holder is entitled to access and withdraw funds, Santander provided materially incorrect information by stating the account was 'two to sign' when in fact either party could transact unilaterally. When Mr B explicitly flagged a dispute and concern about withdrawals, Santander should have placed a block on the account to allow the parties to resolve the matter. The ombudsman could not determine who was entitled to the withdrawn funds as this is a civil matter between the joint account holders, but compensation was warranted for the distress caused by the misinformation and for making the dispute harder to resolve after funds were withdrawn rather than before.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website