You are here: Home - Saving & Banking - News -

Santander fined £32.8m for failing to pass on deceased customers’ money

0
Written by:
19/12/2018
Santander has been fined £32.8m by the Financial Conduct Authority (FCA) for “serious failings” in its probate and bereavement process which affected more than 40,000 customers.

The bank did not transfer funds totalling more than £183m to beneficiaries when it should have done with 40,428 customers directly affected.

It also failed to disclose information relating to the issues with the probate and bereavement process to the FCA after it became aware of them.

In some cases, funds were held for many years contributing to beneficiaries being deprived of the use of them for a considerable amount of time.

Santander took too long to address the issues within its probate and bereavement process once it became aware of them.

And it was too slow to commence remediation exercises to transfer funds from affected accounts to beneficiaries.

Interest and compensation paid

Since 2015, Santander has carried out remediation exercises, to transfer funds from affected accounts to beneficiaries, the FCA said.

These exercises are almost complete and where possible the bank has located beneficiaries and transferred funds to them or is in the process of doing so.

Interest on the funds along with compensation for any consequential loss has also been paid to beneficiaries where appropriate.

Took too long

FCA executive director of enforcement and market oversight Mark Steward said: “These failings took too long to be identified and then far too long to be fixed.

“To the firm’s credit, once these problems were notified to the board and senior management, they were fixed properly and promptly.

“But recognition of the problem took too long.”

He added that the regulator would continue to be looking out for firms with poor systems and controls and would take where necessary to protect consumers.

“Firms must be able to identify and respond to problems more quickly especially when they are causing harm to customers,” Steward added.

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Eight million Brits say cash is still a necessity

Millions of people still rely on cash and face being left behind as the UK moves towards a cashless society,...

Close