UK Bank Santander Pays Out $175 Million On Christmas Day by ‘Mistake’

The British bank Santander got into the Holiday spirit this year by paying out £130 million ($175 million) in error to customers on December 25.

Santander stated in a statement released Thursday that the total amount was spread among 75,000 transactions for about 2,000 corporate and commercial customers.

“We’re sorry that due to a technical issue, some payments from our corporate clients were incorrectly duplicated on the recipients’ accounts,” the statement said.

“None of our clients were at any point left out of pocket as a result and we will be working hard with many banks across the UK to recover the duplicated transactions over the coming days,” it added.

The duplicate transactions were due to a scheduling error, which Santander said was “immediately recognized and resolved.”

It went on to say that the payments were both monthly and one-time and that they may have comprised of payments to suppliers or salary.

According to the statement, Santander is seeking to recover payments from recipient banks via the “bank error recovery process,” and it has procedures in place to collect funds deposited in error directly from receivers.

Santander UK is a wholly-owned sister concern of Banco Santander, a Spanish multinational bank.

According to the bank’s website, the UK business has 14 million active clients and 616 branches.

While $175 million is a sizable amount to pay out by accident, it pales in comparison to the $500 million that Citibank squandered in one of the “worst banking accidents in history.”

The bank delivered $900 million to Revlon’s lenders by mistake, then proceeded to court in August 2020 to retrieve $500 million that hadn’t been paid back voluntarily.

However, in February, a judge in the United States District Court determined that the bank would not be able to collect the funds.

(Adapted from CNN.com)



Categories: Economy & Finance, Regulations & Legal, Strategy, Sustainability, Uncategorized

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