Santander Bank Mistakes $ 175 Million on Christmas Day
The total payment was split across 75,000 transactions for around 2,000 business and corporate clients, Santander said in a statement on Thursday.
“We are sorry that due to a technical problem, some payments from our client companies were incorrectly duplicated on the recipient’s accounts,” the statement read.
“As a result, none of our clients have been left out and we will be working hard with many banks across the UK to recover duplicate transactions over the next few days.”
Santander blamed the duplicate payments on a scheduling problem, which the bank said was “quickly identified and rectified.”
The transactions were both regular and one-time payments that could have included supplier payments or salaries, he added.
Santander works to recover funds from recipient banks through the âbank error recovery process,â the statement said, and it has processes in place to recover funds mistakenly deposited directly from recipients.
Santander UK is a 100% subsidiary of the world bank Banco Santander, headquartered in Spain.
The UK operation has 14 million active customers and 616 branches, according to its website.
While $ 175 million is a large sum to be paid in error, it is insignificant compared to the $ 500 million that the US bank Citibank lost in one of the “biggest blunders in banking history”.
The bank accidentally sent $ 900 million to lenders for cosmetics firm Revlon and went to court in August 2020 to try to recover some $ 500 million that had not been voluntarily repaid.
But in February, a U.S. District Court judge ruled the bank would not be allowed to recover the money.