Not upheld: lack of support during financial difficulty; incorrect charging during breathing space; service failures in responding to correspondence complaint against Santander UK Plc

Decision detail

Summary

Mr W complained that Santander failed to support him during a period of persistent debt and financial difficulty, requesting waiver and refund of interest and charges. Santander declined, stating the accounts did not meet the FCA's persistent debt threshold and offering access to its financial support team. During Mr W's breathing space period, Santander incorrectly charged interest on one account, which it later refunded along with £50 compensation for service failures. The ombudsman found that neither account met the persistent debt threshold, Santander took reasonable steps to offer support, and the firm was not required to refund or waive interest as requested. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the FCA persistent debt rules and found neither account met the threshold because one account fell below £200 during the relevant period and the other account received significant lump-sum payments that exceeded interest and charges. Even if persistent debt had been identified, Santander would only have been required to encourage higher payments and discuss options, not refund interest. The ombudsman found Santander took reasonable steps by inviting Mr W to contact its financial support team, which Mr W did not do. The fact that other lenders offered support does not mean Santander was required to do so, as each lender has different policies. The ombudsman noted Mr W maintained payments despite financial difficulty and that Santander's resumption of interest after breathing space ended was reasonable given the accounts were well-maintained and no formal arrangements were in place.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website