Partially upheld: incorrect arrears reporting, payment arrangement failure, customer service failures complaint against Santander Consumer (UK) Plc

Decision detail

Summary

Ms W complained that Santander incorrectly reported arrears on her conditional sale agreement for a car when incorrect bank details on the direct debit mandate prevented payments from being made. Although Santander initially failed to catch the error, they provided Ms W with a blank mandate form in June 2025 and attempted to resolve the matter. The ombudsman found that while Santander could have been more supportive, Ms W shared responsibility for not verifying the mandate details and for not making alternative payments despite regular contact with Santander. The ombudsman upheld the complaint in part, ordering £100 compensation for distress and inconvenience but rejecting the request to remove all adverse credit file information from July 2025 onwards, as Santander had provided adequate opportunity to resolve matters by that point.

The Ombudsman's reasoning

The ombudsman found that while incorrect details were pre-printed on the mandate (likely not Ms W's fault), the mandate prominently warned to check details before signing, making Ms W partly at fault for not verifying them. Ms W should have reasonably noticed that no payments were being taken from her account for a car she was actively using. Santander provided a blank direct debit form in June 2025 and attempted to resolve matters, offering reassurance about credit file reversal. Although Santander could have been more supportive, Ms W could have made manual payments by other means and was in regular contact with Santander. The ombudsman concluded that Santander did enough by June 2025 to inform Ms W of the error and provide a solution, so they should not be held responsible for non-payment from July 2025 onwards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website