Partially upheld: account access issues, administrative error, misinformation, data security concerns complaint against U (previously operating under a different name)

Decision detail

Summary

Mr P complained on behalf of business U that Santander had wrongly restricted its business account and potentially disclosed account details following a data breach. Santander confirmed no restrictions were applied and that a failed payment was due to security checks for a large transaction; Mr P's inability to withdraw cash was due to daily limits, not account restrictions. Santander admitted to mistakenly misfiling correspondence relating to a different business with a similar name on U's account, creating the false impression U was in administration, and providing misinformation to Mr P. However, Santander confirmed no account details were shared with third parties. The ombudsman upheld the complaint in part, finding the misfiling and misinformation caused inconvenience and business disruption, and ordered total compensation of £200.

The Ombudsman's reasoning

The ombudsman found that the failed payment was likely due to security checks for a large transaction, not account restrictions, and that Mr P may have been unaware of daily cash withdrawal limits. While Santander's account terms permit temporary payment function limitations during security checks, the key failing was the misfiling of unrelated correspondence on U's account and the resulting misinformation provided to Mr P. Although U's account security was not compromised and no data was disclosed, the error caused significant inconvenience and business disruption. Total compensation of £200 was deemed fair and reasonable to address these service failings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website