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Compensation confusion over Santander’s statement fiasco

Will Santander customers affected by the bank's latest foul-up over statements be entitled to compensation? And should they be worried about fraud?  

 
Compensation confusion over Santander’s statement fiasco

Will Santander customers affected by the bank's latest foul-up over statements be entitled to compensation? And should they be worried about fraud?

Santander yesterday admitted sending the wrong bank statements containing other people's personal details to thousands and thousands of customers.

We explain if these customers will be entitled to compensation and if they are now at more risk of fraud?

Will I get compensation from Santander?

Early misleading reports indicate that tens of thousands of Santander customers whose bank statements were sent to the wrong address will be entitled to between £25 and £100 in compensation each.

However, a spokesperson for Santander today confirmed that compensation will only be paid out to people who fall victim to fraud as a result of the mistake.

Santander said that it is ‘far too early’ to say how much compensation would be paid out in this instance and that the amount will be decided on a ‘case by case basis’.

Any compensation would be paid in addition to a full refund of any money lost as a result of fraudulent transactions, the bank added.

The amount of people affected by Santander’s error was originally estimated as up to 35,000, but the Spanish bank has since specified that 22,640 statements have been sent to the wrong people.

This means that unless over 50% of the customers who received the wrong bank statements consequently suffer from fraud, it is unlikely ‘tens of thousands’ of people will receive compensation.

Am I at greater risk of fraud?

Santander said: 'We want to reassure customers that the risk of fraud on their account has not been increased because of this error’.

Urging people not to panic, the bank explained that you need more information than the name and account number printed on the bank statement to access your account or withdraw money.

However, as we reported yesterday, consumer group Which? is worried about what this mistake means in terms of privacy and data protection.

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20 comments so far. Why not have your say?

Dislexic Landlord

Dec 24, 2010 at 12:42

nothing suprises me about this bank

they are a joke both the banking arm and the credit card arm

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colin macdermott

Dec 24, 2010 at 12:49

So its OK to bog up a standard proceedure and if you are worried or even realise an error has been made and you are away at the time fear not you can go and throw money at a credit agency , but then someone near to you or far away will know what you have and the complacent views expressed so far by the spokesperson won't stop you details being known by people who can skin the banking system and know far more about how to do it than Santander.

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Anonymous 1 needed this 'off the record'

Dec 24, 2010 at 12:57

I bank with Santander and although there are issues that are less than perfect

I am happy to stay put , the reality of this incident is that Santander will make good any losses suffered - any mistake that has been made has been by a Human being - flesh and blood like you and me so an apology and a commitment to put thing right should put an end to the matter.

If you or I screw up in our business or personal life (I Have been guilty big time on both counts) do we really need all the forces of hell to be unleashed upon us - I am sane, alive and both highly sucessful and productive today because of the generousity of spirit of people who chose not to put the boot in

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G S = Go Short

Dec 24, 2010 at 13:50

Maybe a class action, they should be sued for malpractice, as should the governments of all countries.

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Keith Snell

Dec 24, 2010 at 14:41

As all our banks, UK & Spanish, have been defrauding us as per the so called credit crunch for years with no hint of compensation to tax payers do they even recognise a fraud when they are guilty of it, or is it only other peoples fraud they try & detect?

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paul kaye

Dec 24, 2010 at 15:03

I have read all comments about this joke bank.

I wouldm advise you to change banks as a matter of urgency asap before they go bust.

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Anonymous 2 needed this 'off the record'

Dec 24, 2010 at 15:51

Anon1 thinks that banks are run by human beings.

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Derek Potter

Dec 24, 2010 at 16:10

No, when we make mistakes we do not need all the forces of hell unleashed upon us. If I carelessly skid and hit a child, why should I be prosecuted for anything other than a minor lapse of concentration? If my garage fails to mend my brakes, why should they be held responsible, they're only human and humans make mistakes? If my doctor poisons me, why should he be struck off? He's just human. And if a serial murderer gets caught, why not forgive and forget, he's only human too.

Being human is not an excuse. If this sort of impact on customers were inevitable if a clerk makes a mistake, there would not be so much indignation. But it's not inevitable. Proper quality controls would prevent it. Doing technical audits on the system suppliers would prevent it. The bank is to blame, technically and morally.

Banks and other institutions cut corners to save pennies and then blame human error when things go wrong. Who is to say what the next "human error" will bring about? Total loss of all our savings? Loss of credit ratings? Erroneous reporting of customers for money laundering? As soon as you allow human error as an excuse you open the floodgates. If there were no way to avoid it, it would be different, they'd have to have risk mitigation measures in place, but human error is perfectly avoidable with proper controls. Individuals make mistakes, big organisations should not - the individual errors should be detected and fixed. There is no excuse whatsoever.

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FRANKLFAN

Dec 24, 2010 at 16:51

For the past few months the UK commercial mailing industry has been in decline with one mailing house going out of business per week, on average. Why? Because all customers want "cheap" rather than "good" and there's a lot of "suicide bidding" going on. Eventually, this will end with just a few mailing houses left. In the meantime, companies like Santander (who have the money, but prefer to buy the cheapest service) will use the mailing house that gives the cheapest quote. Why big companies, who should know better, risk going for the cheapest quote, I don't know. But, this is an example of what can go wrong. Was it worth saving a few quid....?

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John Howard Norfolk

Dec 24, 2010 at 17:38

A simple question....

How many Santander employees hold a financial qualification?

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Anonymous 3 needed this 'off the record'

Dec 24, 2010 at 19:22

I think you will find that the forces of hell are actually used by the banks and Santander in particular - £35 charges for 1p overdrawn etc. Having given them direct debit instructions in writing for payments on the 28th of the month for my mortgage they decide to help themselves 10 days earlier - no explanation or apology and no human being who can provide the slightest explanation for their actions

Maybe the increasing mountain of complaints about this appalling apology for a bank will provoke some sort of regulatory action but I'm not holding my breath

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Derek Potter

Dec 24, 2010 at 21:25

I am sure you are correct Franklfan. And that is why the market must be corrected by forcing organizations to pay heavily for rotten service, irritation and consequential losses.

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Anonymous 4 needed this 'off the record'

Dec 25, 2010 at 21:58

For several years I have had a bank an online bank a/c with Cahoot. This worked very well and I was very happy, BUT now they are part of Santander problems are occurring. For the last 3 months they have not been accepting payments from one of my pension providers. Foretunately I have another current a/c with another bank, but if I didn't how long would it take to sort this out?

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DAVID LOWE

Dec 27, 2010 at 12:12

Santander had a lot of technical problems at the commencement of their work in the UK, but now are working very well indeed with my accounts. They are simply working in a fast, technical age with the old pen and paper clerical systems long gone.

There is a general tone now going on in the mediaof bank bashing in general, and the people, who probably don't even know from week to week the amount in their accounts, jump on the band wagon.

If you keep your account in credit Santander will pay you a whopping 5% APR. up to £2500 deposi, and run you statement details very effieciently on line t - so what's wrong with that all? All you moaners - get a life!

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Anonymous 3 needed this 'off the record'

Dec 27, 2010 at 12:44

I would get a life - the problem is that Santander keep screwing it up. They managed to reset all my identity details i.e. completely different date of birth and thus denied me access to all online accounts without telling me why. It took me hours of my time in one of their branches trying to sort it out

It is time that they were fined big time for appalling service

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Derek Potter

Dec 27, 2010 at 18:08

Why are you shilling for this appalling bank, David?

We moaners are not complaining about minor irritations but about serious cock-ups that significantly affect our quality of life - that and a surly stone-walling customer service trained only to have an unshakeable conviction that they are always right and the customer (and other banks) always wrong.

Maybe you have enough disposable income that it wouln't affect you, but, trust me, their losing £800 of mine for nearly a month affected me and I shall continue to moan about it - and, more particularly, about their handling of the problem for a very long time indeed.

Still they've sorted out your on-line statements now, so that's all right.

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robert munro

Dec 27, 2010 at 18:29

I find it rather amusing that 'our' banks having screwed up big time and being supported by the taxpayer for vast sums have to sit by and watch this foreign competitor sail in and grab so much of the business and infrastructure.

It's a kind of poetic justice really since 'our' banks were quite happy to make a mint(yes, a pun) whenever the likes of Cadbury were sold to foreign bidders and to explain why it was for our own good even if it didn't seem like it and certainly wasn't, if the truth were told.

Strangely enough, Santander haven't had to take taxpayers money despite their head office in Spain (a country that is the scene of a very British mortgage massacre) which leads to a sneaking suspicion that it might be better run than many another bank closer to home.

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Derek Potter

Dec 27, 2010 at 18:42

On a more serious point, yes the media are bashing the banks, but that is because there is one - and apparently only one - facet of the bloated system of counterfeit money that we have to endure that is obvious enough for Joe Public to get hold of. And that is, of course, that, after they have run out of people to bleed dry, banks have the mysterious power to get governments to bail them out with JP's money. Even JP thinks there is something fishy about that.

Oh, and pay whopping great bonuses to managers who have proved themselves to be incompetent.

One day JP will wake up to the fact that the entire economy that he has worked to support all his life is based on three massive swindles:

1 Fractional Reserve Banking - aka lending money you have not got

2 Government Stealth Default - aka inflation

3 Fiat Currency - aka printed money

Of course only the first is directly anything to with banks, but in practice the three are closely entangled in one monstrous system of fraud.

Long may bank-bashing continue!

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MORGAN PIPE

Feb 04, 2011 at 19:45

I read with interest about a direct debit being taken early for a mortgage repayment. Today I found out I was overdrawn with my bank as a result of Santander taking a payment for my credit card. I had arranged for funds to be transferred because I had a large credit card bill and would not have been overdrawn at all except for Santander taking the payment early.

I now have bank charges to pay and also adverse credit with my bank.

I telephoned Santander this morning who assured me someone would be in touch today with regard to discussing this. Needless to say, I haven't heard anything. This is yet another complaint I have made to Santander. Time to change cards-but they won't be worried. The Sunday Times is always publishing letters from people who have had problems with Santander and my complaint may be another if I don't hear tomorrow. I emailed them but surprise surprise they are updating and it may be some time before I hear. Well done Santander-useless again!

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Anonymous 4 needed this 'off the record'

Feb 05, 2011 at 08:01

They are not taking money out of my account. They are refusing to accept my pension credits from a number of funds. Foretunately | have an account with another bank and I am transfering my regular income into this account. I have not attempted to contact Santander. What is the point? My account is actually with Cahoot, which was a small efficient online bank until Santander got their grubby paws on it

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