Upheld: irresponsible lending and failure to intervene when signs of vulnerability emerged complaint against Santander UK Plc
Financial Ombudsman decision DRN-6421566 of 2026-06-11T00:00:00+00:00. irresponsible lending and failure to intervene when signs of vulnerability emerged complaint against Santander UK Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6421566 |
|---|---|
| Decision date | 2026-06-11T00:00:00+00:00 |
| Firm | Santander UK Plc |
| Product | Overdraft |
| Claim type | irresponsible lending and failure to intervene when signs of vulnerability emerged |
| Outcome | Upheld |
| Remedy | Santander must rework Mr B's current balance to remove all overdraft interest, fees and charges applied since July 2021. If a balance remains, Santander should arrange a suitable repayment plan and remove adverse credit file information once cleared. If removing charges results in overpayments, these should be returned to Mr B with 8% simple interest from the date made until settlement, and adverse credit information should be removed. |
Summary
Mr B complained that Santander provided an unaffordable overdraft and failed to support him in managing it. His overdraft limit was increased multiple times between 2020 and 2022, and he used it extensively to fund gambling transactions alongside other credit facilities. The ombudsman found that from July 2021, when Mr B's account showed clear patterns of gambling-funded spending and vulnerability, Santander should have intervened but instead continued providing access and increased limits. The complaint was upheld and Santander was ordered to remove all overdraft interest, fees and charges from July 2021 onwards, arrange repayment plans if needed, and restore Mr B's credit file.
The Ombudsman's reasoning
The ombudsman found that whilst Santander's internal data showed no clear signs of financial difficulty, the account management itself demonstrated vulnerability requiring review at the July 2021 overdraft renewal. The pattern of gambling transactions funded by the overdraft, combined with reliance on other credit facilities, indicated the overdraft had become unsustainable. Santander should have intervened at this point rather than continuing to provide access and increasing limits in February and October 2022. Later signposting of gambling support (from March 2024) was insufficient and came years after the point intervention should have occurred.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander UK Plc, all decisions | 14,410 | 22% |
| Overdraft, all decisions | 3,791 | 24% |
Source
Read the original decision on the Financial Ombudsman Service website