Partially upheld: Irresponsible lending complaint against Santander UK Plc
Financial Ombudsman decision DRN-6395393 of 2026-06-18T00:00:00+00:00. Irresponsible lending complaint against Santander UK Plc. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6395393 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | Santander UK Plc |
| Product | Overdraft |
| Claim type | Irresponsible lending |
| Outcome | Partially upheld |
| Remedy | Santander must re-work Mr and Mrs C's overdraft balance by removing all additional interest, fees, and charges applied from June 2021 onwards. If a balance remains, Santander should arrange a suitable repayment plan and may record negative information backdated to June 2021. If removing charges results in overpayments, these should be returned with 8% simple interest from the date made until settlement, and any adverse credit file information should be removed. Santander must provide a tax certificate if requested. |
Summary
Mr and Mrs C complained that Santander continued to provide an overdraft facility they could not afford. Their overdraft was increased multiple times between July 2019 and September 2020, reaching £850. By June 2021, despite increased wages, they experienced returned direct debits and repeated overdraft limit breaches, indicating financial difficulty. The ombudsman upheld the complaint in part, finding that while the initial increases were reasonable, Santander should have taken active steps from June 2021 onwards to help reduce overdraft reliance rather than relying on passive written communication. Santander was ordered to remove interest, fees, and charges from June 2021 onwards and arrange appropriate remedies.
The Ombudsman's reasoning
The ombudsman found that Santander's initial checks before each overdraft increase were reasonable and proportionate, with no significant adverse credit markings or unmanageable credit levels. However, by June 2021, the pattern of use demonstrated clear signs of financial difficulty: returned direct debits, repeated overdraft limit breaches, and prolonged reliance despite increased wages. The ombudsman concluded that Santander should have taken active steps beyond written communication to help Mr and Mrs C reduce their overdraft reliance, as passive letters without response should have prompted more proactive intervention such as unilaterally reducing the overdraft limit.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander UK Plc, all decisions | 14,502 | 22% |
| Irresponsible lending, all decisions | 30,675 | 37% |
| Overdraft, all decisions | 3,695 | 24% |
Source
Read the original decision on the Financial Ombudsman Service website