Not upheld: provision of incorrect and contradictory information about arrears, payment arrangements, and capitalisation eligibility complaint against Santander UK Plc

Decision detail

Summary

Mr A complained to the FOS about three mortgages (one residential and two buy-to-let) taken out with Santander UK Plc in 2006, alleging that Santander provided incorrect and contradictory information about arrears, payment arrangements, and capitalisation eligibility between mid-2025 and early 2026. Santander acknowledged providing contradictory information attributable to different eligibility criteria for residential versus buy-to-let mortgages, apologised, clarified the position, and paid nominal compensation on each occasion. The Ombudsman found that Mr A was not materially worse off as a result of the incorrect information and was not denied anything he was eligible for. The Ombudsman concluded that the compensation already paid was reasonable and no further action was required.

The Ombudsman's reasoning

The Ombudsman found that while Santander provided contradictory and inaccurate information, Mr A was not materially worse off as a result. He was not denied anything for which he was eligible; at worst, he was led to believe he might be eligible for something he was not. The Ombudsman noted that two of the three mortgages are unregulated buy-to-let products treated as commercial transactions, and that Mr A, as an enterprise engaging in commercial activity, is held to a higher standard than a consumer. The compensation already paid by Santander for the misleading information was reasonable in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website