Upheld: incorrect credit file recording, identity mix-up, inadequate compensation, data handling complaint against Santander UK Plc

Decision detail

Summary

Mr C complained that Santander incorrectly recorded adverse information on his credit file by mixing up his identity with another person of the same name and date of birth, resulting in a default being recorded for a debt not his own. Santander initially offered £250 compensation, which Mr C rejected as inadequate. Santander subsequently offered an additional £1,000 and took corrective actions, though it made further errors by missing one credit reference agency and re-adding the default. The ombudsman upheld the complaint and determined that total compensation of £1,250 was reasonable, confirming that the DCA has now made necessary amendments and requiring Santander to apologise for not informing Mr C sooner of the resolution.

The Ombudsman's reasoning

The ombudsman found that Santander's error had far-reaching consequences and that subsequent errors were made in resolution. However, the total compensation of £1,250 is reasonable in line with published guidelines considering the time taken to resolve the issue and the impact on Mr C. The ombudsman noted that regarding the mortgage application claim, Mr C did not provide evidence that rejection was solely due to Santander's misreporting, so no further compensation could be awarded for this. The ombudsman confirmed that the DCA has now made the necessary amendments, making it reasonable to finalise the case.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website