Upheld: unauthorized account opening / fraud / failure to resolve fraud complaint promptly complaint against Santander UK Plc

Decision detail

Summary

Mr E discovered in February 2025 that a credit card had been fraudulently opened in his name in 2023. After contacting Santander, he was told the matter would be resolved. However, in October 2025, he received correspondence from debt collection agency Cabot regarding the same account, prompting him to make multiple further contact attempts. The ombudsman upheld the complaint, finding Santander at fault for failing to resolve the issue promptly after February 2025, despite the initial fraud being the fraudster's responsibility. While rejecting compensation for a lost mortgage opportunity as too speculative, the ombudsman awarded £475 in compensation for distress and inconvenience, considering Mr E's difficult personal circumstances at the time.

The Ombudsman's reasoning

The ombudsman accepted that Mr E first contacted Santander in February 2025 (not 2023 as Santander suggested), and that the 2023 identification request was directed at the fraudster rather than Mr E. While the initial distress arose from the fraudster's actions rather than Santander's failing, Santander was at fault for telling Mr E in February 2025 that the matter was resolved when it was not, leading to further distress when Cabot contacted him in October 2025. The ombudsman rejected compensation for lost mortgage opportunity as too speculative, but awarded compensation for the distress and inconvenience caused by Santander's failure to resolve the issue promptly. The ombudsman considered Mr E's difficult personal circumstances (including issues relating to his late father) as a factor that would have been exacerbated by Santander's failings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website