Not upheld: debt sale and recovery procedures complaint against Santander UK Plc

Decision detail

Summary

Mr H complained that Santander unfairly sold his outstanding debt of over £6,000 to a debt recovery agency while he believed it was still in dispute. Santander had sent Mr H eight letters between June and October 2024 regarding the debt status and required actions, but Mr H did not engage with the bank. The debt was sold on 17 September 2025, approximately one year after recovery action commenced. The ombudsman found that Santander acted fairly and reasonably in selling the debt, as Mr H's failure to engage despite multiple communications and the absence of any repayment agreement justified the sale. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that Santander was entitled to sell the debt as Mr H had failed to engage with the bank despite receiving eight letters over several months clearly setting out the status of the debt and the steps required to avoid further action. The fact that Mr H believed the debt was disputed did not relieve him of the obligation to engage with Santander, nor did it make it unreasonable for Santander to pursue recovery of an outstanding balance. After approximately one year with no engagement and no repayment agreement in place, it was fair and reasonable for Santander to sell the debt to a third party for recovery.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website