Santander UK Plc · DRN-6098344

The complaint Mrs D complains that Santander UK Plc is holding her liable for the debt on a loan which she applied for as part of a scam. What happened The detailed background to this complaint is well known to both parties. So, I’ll only provide a brief overview of some of the key events here. In September 2024, Mrs D saw an advert online for a job opportunity which required her to make payments in cryptocurrency in return for commission. Unfortunately, this turned out to be an employment scam and as the scam progressed, she was persuaded to take out loans which were paid into Bank H before being paid out to the scam. On 27 September 2024, Mrs D applied for a £15,000 loan with Santander, stating the loan was for home improvements. The funds were paid into Bank H on 3 October 2024. Mrs D realised she’d been scammed when she was unable to claim her commission. She complained to Santander, and while it eventually agreed to remove the loan from her credit file, it said she’d be liable for the loan because there was no evidence it was fraudulent. Mrs D wasn’t satisfied and so she complained to this service, explaining that she’d been coerced by scammers to apply for the loan and that she’d believed the job was legitimate. She also said Santander ought to have identified that she was at risk of fraud when she applied for the loan. But Santander said Mrs D had made the application online and had physically entered the passcode that was sent via letter to her registered address, releasing the funds to Bank H before they were paid out to the scam. So, she had the benefit of the loan and was therefore liable for it. In addition, it said Bank H had refunded some of her loss, but these funds weren’t used to pay off the loan. Our investigator didn’t think the complaint should be upheld. She noted Mrs D accepted having made the loan application, the loan was applied for online using her genuine details, and she had activated the loan with a passcode which was sent by post to her correct address. The funds were then paid into her Bank H account before being transferred out to other accounts. So, she was satisfied Mrs D knew about and consented to the loan and that she had use of the loan funds, as she thought she was using them for a legitimate opportunity to earn commission. Our investigator further explained that Mrs D didn’t hold an account with Santander, so it wouldn’t have been unable to identify that she was using the funds to buy cryptocurrency, and as Bank H has refunded a large part of her loss, she can’t now ask Santander not to hold her liable for the loan. Overall, she was satisfied Santander’s decision to hold Mrs D liable for the loan was fair. Mrs D has asked for the complaint to be reviewed by an Ombudsman.

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What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. The detailed background to this complaint is well known to both parties. So, I’ll only provide a brief overview of some of the key events here. Having considered this carefully, I’m satisfied Mrs D knew about and consented to this loan being taken out in her name. This is because she accepts that she completed the online loan application, and I note it contains her correct details. Mrs D was then sent a passcode to her home address which was used to activate the loan by e-signing the agreement. The loan funds were then deposited into Mrs D’s Bank H account and from there she authorised payments to the scam. So, while I accept Mrs D did lose the loan funds to the scam, I’m satisfied that it was taken out with her knowledge and consent and that she had use of the funds. In addition, it’s my understanding that Mrs D has already been compensated by Bank H regarding the loss of the loan funds. This is because she brought a complaint to us about Bank H, the outcome of which included that they would refund a large part of her loss, which included the funds from this loan. In circumstances like this, where Santander granted the loan in good faith, and Mrs D then paid those funds to the scam but has since received the appropriate amount of funds back, I don’t think I can fairly tell Santander that it can’t pursue Mrs D for any outstanding loan balance. So, I’m satisfied that Santander’s decision to hold Mrs D liable for the loan is fair. My final decision My final decision is that I don’t uphold this complaint. Under the rules of the Financial Ombudsman Service, I’m required to ask Mrs D to accept or reject my decision before 21 April 2026. Carolyn Bonnell Ombudsman

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