Not upheld: improper administration of credit agreement; credit file reporting complaint against Santander Consumer (UK) Plc

Decision detail

Summary

Mr R complained that Santander failed to properly administer his vehicle finance conditional sale agreement and wrongly told him it had ended, arguing this meant the agreement was no longer valid or enforceable and adverse credit file information should be removed. Santander had experienced system issues preventing processing of the original agreement, made administrative errors including failing to collect payments and issuing a completion letter in error, and later located the original signed June 2025 agreement. The ombudsman found the agreement remained valid and enforceable despite these errors, that Mr R had not made contractual payments, and that a £41,000+ borrowing could not be extinguished by administrative failures. The complaint was not upheld and Santander's £250 compensation offer was deemed fair.

The Ombudsman's reasoning

The ombudsman found that despite Santander's administrative errors, a valid and enforceable credit agreement existed from June 2025, evidenced by the signed agreement. The errors did not extinguish the underlying agreement or permanently discharge Santander's right to enforce it. The ombudsman noted that Mr R had not made the contractual monthly payments and that a regulated borrowing of over £41,000 could not reasonably be considered permanently extinguished due to administrative failures. The ombudsman rejected Mr R's argument that he relied on Santander's communications for other financial commitments, finding Mr R remained aware of his liability under the agreement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website