In an alarming turn of events, a series of administrative errors by TSB and Santander plunged one individual, referred to as RL, into financial chaos. RL's credit record was in excellent condition until Santander unexpectedly took action against them. This problem emerged just as RL applied for a Santander mortgage to fund a home extension, leading to the cancellation of their plans. TSB erroneously placed three fraud markers on RL's name, which prompted Santander to close all five of RL's accounts. It took RL six weeks and a Data Subject Access Request (DSAR) to uncover the root of these perplexing issues.
TSB initially claimed it had recorded RL as a fraud victim rather than a fraudster. However, TSB's error caused significant distress and financial setbacks for RL. Despite numerous attempts to reach out, TSB has not responded to RL's emails and letters over the past eight months. Meanwhile, Santander remained firm in its decision, declaring itself "comfortable" with the course of action it had taken.
RL's predicament began when they received a notification from Santander about the closure of their accounts. Despite having no way of knowing if the fraud markers remain due to their visibility only to victims of fraud on the National Fraud Database, RL has faced ongoing uncertainty and distress. The financial institutions involved have shown little urgency in rectifying their mistakes.
"We are all so utterly dependent on the banking industry, we cannot live without a bank account, cannot run a business, or pay a bill or keep a roof over our heads." – Unknown
RL's financial troubles escalated when they were forced to cancel a planned home extension due to the declined mortgage application. Furthermore, RL had to endure the anxiety that Santander might recall the mortgage it had previously granted. After much persistence, including the threat of filing a complaint with the Information Commissioner's Office, Santander reopened RL’s accounts, refunded £223 in lost interest, and offered £150 in compensation.
"We're sorry that a human error meant RL's accounts were incorrectly linked to a fraud marker that was placed incorrectly by another bank and then closed." – Santander
TSB eventually acknowledged its mistake and apologized for the administrative error that led to the incorrect application of fraud markers against RL.
"We apologise for an administrative error that caused us to incorrectly apply fraud markers against RL." – TSB
Despite this acknowledgment, TSB has yet to provide a comprehensive resolution or further communication with RL. The situation remains unresolved, with RL having lodged a complaint with the Financial Ombudsman Service. Unfortunately, the service cannot investigate as RL is not a direct customer of TSB.
Santander admitted that a human error linked RL’s accounts to an incorrect fraud marker placed by another bank, resulting in their closure. The apology from both banks has done little to alleviate the stress and inconvenience caused to RL.