Not upheld: irresponsible lending and failure to monitor overdraft usage complaint against Santander UK Plc

Decision detail

Summary

Mrs E complained that Santander failed to monitor her overdraft overuse and recognise financial difficulty during annual reviews within the last five years. Santander held a current account with a £2,000 overdraft limit since 2017 and was identified as a repeat user from November 2021 onwards, receiving repeat usage letters. The ombudsman found that although Mrs E was a repeat user, there were no obvious signs of financial difficulty because she maintained sufficient funds in other Santander savings accounts and had regular income. Santander appropriately monitored the account and sent repeat usage communications, treating Mrs E fairly in accordance with regulations. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that although Mrs E was a repeat user of her overdraft, there were no obvious signs of financial difficulty because she had sufficient funds in other savings accounts that could have been used to reduce or repay the overdraft. The regulations distinguish between repeat users who show signs of financial difficulty and those who do not. Santander appropriately monitored the account and sent repeat usage letters from November 2021 onwards, which constituted fair treatment in accordance with regulations. The presence of regular income and accessible savings meant the overdraft was sustainably affordable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website