Upheld: irresponsible lending complaint against Santander UK Plc
Financial Ombudsman decision DRN-6319522 of 2026-05-13T00:00:00+00:00. irresponsible lending complaint against Santander UK Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6319522 |
|---|---|
| Decision date | 2026-05-13T00:00:00+00:00 |
| Firm | Santander UK Plc |
| Product | loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | Santander must: (1) calculate total repayments made by Miss B and deduct from the £10,000 borrowed; (2) if Miss B overpaid, refund the difference plus 8% simple interest from date of overpayment; (3) if capital remains outstanding, arrange an affordable payment plan; (4) remove all adverse information from Miss B's credit file once the balance is cleared or if overpaid. |
Summary
Miss B complained that Santander UK Plc irresponsibly lent her £10,000 in December 2023. The ombudsman upheld the complaint, finding that Santander's pre-lending checks were inadequate as they failed to verify Miss B's income and did not identify that her declared monthly costs of £1,500 exceeded her actual average income of approximately £892. Analysis of Miss B's account statements revealed insufficient funds to cover both her existing costs and the new loan repayments. The ombudsman ordered Santander to refund any overpayments with interest, arrange an affordable repayment plan for any outstanding capital, and remove adverse credit file information.
The Ombudsman's reasoning
The ombudsman found that Santander's pre-lending checks were not reasonable and proportionate given the loan size. The income figure was not verified despite the substantial loan amount. Analysis of Miss B's account statements showed her average income of approximately £892 was insufficient to cover her declared monthly costs of £1,500, let alone the additional Santander loan repayments. Even considering only rent at £625, there would be insufficient funds for loan repayments. Therefore, Santander should have realised Miss B was likely unable to sustainably repay the loan.
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