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| Version 2 | Version 3 |
|---|---|
| Santander failed to pass on inheritances | Santander failed to pass on inheritances |
| (35 minutes later) | |
| Santander UK has been fined £32.8m by the Financial Conduct Authority (FCA) for failing to properly process the accounts of deceased customers. | Santander UK has been fined £32.8m by the Financial Conduct Authority (FCA) for failing to properly process the accounts of deceased customers. |
| Santander did not transfer funds totalling over £183m to beneficiaries when it should have done, affecting a total of 40,428 customers directly. | Santander did not transfer funds totalling over £183m to beneficiaries when it should have done, affecting a total of 40,428 customers directly. |
| And, after it became aware of the issues, the bank failed to disclose the problems to the FCA. | And, after it became aware of the issues, the bank failed to disclose the problems to the FCA. |
| Santander said it was "very sorry" for the impact its failings caused. | Santander said it was "very sorry" for the impact its failings caused. |
| "We accept the FCA's findings and have fully cooperated with their investigation," said Santander UK's chief executive Nathan Bostock. | "We accept the FCA's findings and have fully cooperated with their investigation," said Santander UK's chief executive Nathan Bostock. |
| "We have now transferred the majority of customer funds and made significant improvements to our whole probate and bereavement process, ensuring we provide both a sensitive and efficient service to our bereaved customer representatives and those who are managing the estates of people who have passed away." | "We have now transferred the majority of customer funds and made significant improvements to our whole probate and bereavement process, ensuring we provide both a sensitive and efficient service to our bereaved customer representatives and those who are managing the estates of people who have passed away." |
| Mark Steward, executive director of enforcement and market oversight at the FCA said that the failings "took too long to be identified and then far too long to be fixed". | Mark Steward, executive director of enforcement and market oversight at the FCA said that the 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 said. | "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 said. |
| There were weaknesses in how Santander organised and controlled its probate and bereavement processes, the FCA added. | There were weaknesses in how Santander organised and controlled its probate and bereavement processes, the FCA added. |
| This meant that the bank: | This meant that the bank: |
| As a result, despite Santander being informed that a customer had died, funds would not be transferred to those who were entitled to them. | As a result, despite Santander being informed that a customer had died, funds would not be transferred to those who were entitled to them. |
| 'Santander still has my money' | |
| Cary Sumpter, a surveyor from Bexhill-on-Sea, told the BBC that when his aunt died in 2010, his mother and the appointed solicitors spent months telephoning and writing to Santander to release funds from his aunt's bank accounts. | |
| "There was certainly several hundred pounds in one account, and we thought there were other accounts, but we could never find out," said Mr Sumpter. | |
| "Santander wouldn't return calls or emails; they blocked all attempts to find out." | |
| In the end, the aunt's estate was settled without the funds held by Santander. | |
| "The solicitors eventually advised us to stop chasing, since it was costing more than the amount was worth," added Mr Sumpter. | |
| "To this day, that money is still sitting somewhere in the coffers of Santander." | |
| 'Errors of judgement' | 'Errors of judgement' |
| And in instances where deceased customers had several different bank accounts and investments, the bank failed to identify these funds, which meant that those who were entitled to them remained unaware of the existence of those funds. | And in instances where deceased customers had several different bank accounts and investments, the bank failed to identify these funds, which meant that those who were entitled to them remained unaware of the existence of those funds. |
| Melinda Giles, partner at Giles Wilson Solicitors, and a representative for private client solicitors on the Law Society Council, told the BBC that similar incidents have occurred at other British banks, because there was "too much of a relaxed approach" from many banks to the legal process. | Melinda Giles, partner at Giles Wilson Solicitors, and a representative for private client solicitors on the Law Society Council, told the BBC that similar incidents have occurred at other British banks, because there was "too much of a relaxed approach" from many banks to the legal process. |
| "I have come across errors of judgement by a variety of banks in that they do not insist on a grant of probate to be sure that they are paying the money that belongs to a deceased person to the correct person entitled," she said. | "I have come across errors of judgement by a variety of banks in that they do not insist on a grant of probate to be sure that they are paying the money that belongs to a deceased person to the correct person entitled," she said. |
| "The news about Santander is disappointing because solicitors are very keen to work with banks to ensure that the rule of law is followed." | "The news about Santander is disappointing because solicitors are very keen to work with banks to ensure that the rule of law is followed." |
| She added that in many cases, people do not use a probate lawyer, and they assume that the bank knows what their legal rights are. However, the banks sometimes lack knowledge of the legal process. | She added that in many cases, people do not use a probate lawyer, and they assume that the bank knows what their legal rights are. However, the banks sometimes lack knowledge of the legal process. |