British bank mistakenly pays out $ 175 million on Christmas Day – WSVN 7News | Miami News, Weather, Sports
(CNN) – UK bank Santander got in the Christmas spirit this year when it mistakenly disbursed a total of £ 130 million (US $ 175 million) to customers on December 25th.
The total payment has been split across 75,000 transactions for around 2,000 corporate and commercial customers, Santander said in a statement released Thursday.
“We are sorry that, due to a technical problem, some payments from our corporate customers were mistakenly duplicated in the accounts of the recipients,” the statement said.
“None of our clients have been left out of their pockets at any point and we will be working hard with many banks across the UK in the coming days to restore the duplicated transactions.”
Santander blamed a deadline problem for the double payments, which the bank said was “quickly identified and resolved”.
The transactions were both regular and one-time payments, which could include supplier payments or wages, she added.
Santander is said to be working to reclaim funds from recipient banks through the “bank error recovery process” and has processes in place to reclaim funds in error directly from recipients.
Santander UK is a wholly owned subsidiary of the World Bank Banco Santander based in Spain.
The UK operation has 14 million active customers and 616 branches, according to its website.
Although $ 175 million is a significant sum to be accidentally paid out, it pales in comparison to the $ 500 million that US bank Citibank lost to “one of the biggest mistakes in banking history.”
The bank accidentally sent $ 900 million to cosmetics company Revlon lenders and went to court in August 2020 to reclaim around $ 500 million that had not been voluntarily repaid.
But in February, a US District Court judge ruled that the bank could not reclaim the money.
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