Upheld: Goods and services under S75 complaint against Santander UK Plc

Decision detail

Summary

Mr J purchased a £14,000 kitchen using a Santander credit card in August 2024 and encountered problems with the kitchen and installation. He contacted Santander on 19 February 2025 to pursue a section 75 claim, providing all necessary documents by 21 February. However, Santander did not act on the claim until 3 April 2025, a delay of approximately six weeks, without providing any explanation. The ombudsman upheld the complaint, finding that Santander failed to handle the claim within a reasonable timescale contrary to FCA guidance and did not keep Mr J properly informed. Santander was ordered to pay £200 compensation for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that Santander failed to act on the claim for approximately six weeks without providing any explanation for the delay, despite having all necessary information in February. The FCA guidance requires credit card providers to handle section 75 claims in a reasonable timescale and explain delays. While Santander eventually took appropriate steps, an earlier intervention may have been more effective. The initial letter's phrase 'aim to investigate within eight weeks' created ambiguity but was not the key issue. The complaint was upheld because Santander did not deal with the claim within a reasonable timescale and did not keep Mr J properly informed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website