Europe's news in English

COPY LINK

MONEY

Spain’s Santander gifts €155 million to UK customers in Christmas Day error

Santander's UK bank on Thursday was seeking to recover £130 million (€155 million) it paid out on Christmas Day by mistake.

Published: 30 December 2021 18:43 CET

Spain's Santander gifts €155 million to UK customers in Christmas Day error

A customer enters a branch of the Santander bank on Oxford Street, in central London. The bank said the error was caused by a scheduling issue which "we quickly identified and rectified". (Photo by LEON NEAL / AFP)

Due to a “technical issue,” 75,000 payments by some 2,000 corporate and commercial account holders were made twice to their recipients, the bank said in a statement sent to AFP, confirming a report in The Times.

The duplicated transactions made on Christmas morning came from the bank’s own reserves, meaning that none of the clients were left out of pocket, the bank said.

It added that it “will be working hard with many banks across the UK to recover the duplicated transactions over the coming days”.

The bank said the payments could have included wages and payments to suppliers.

The Times reported that the payments were made to accounts in numerous UK banks, which are now being asked by Santander to recover the money.

One bank told the newspaper that it would be reluctant to recover the funds if the account holder had already spent the unexpected windfall and this would tip them into overdraft.

Santander said that it also had “processes in place as a bank to seek recovery of those funds directly from recipients”.

The bank said the error was caused by a scheduling issue which “we quickly identified and rectified”.

The British high street wing of Santander has 14 million account holders and made a net profit of more than £1 billion in the first three quarters of 2021.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

When should you turn down an inheritance in Spain?

Apart from the death of a loved one, receiving an inheritance can also result in its own setbacks. Unfortunately, for some people, this is compounded by the fact that inheritances can become an extra source of stress, whether it be through family disputes or the bureaucratic work that follows.

Increasingly in Spain, however, people are rejecting their inheritances. Last year, Spaniards renounced more inheritances than ever before, consolidating an emerging trend in recent years and setting a record high, according to data from Spain’s General Council of Notaries.

Just over 56,100 people rejected their inheritances in all, 16 percent of the total number.

Why are they doing this, and when should you consider turning down an inheritance?

EXPLAINED: How choosing the right region in Spain can save you thousands in inheritance tax

When should you turn down an inheritance in Spain?

Traditionally, people turn down inheritances when it isn’t worth their while to receive it. In other words, usually because of the high amounts of debt the inheritance includes, meaning that the deceased has left more liabilities than assets.

This is usually much more common in times of economic downturn and uncertainty. This is why, in addition to financial uncertainty caused by the Covid-19 pandemic, the period of stagnant inflation that followed probably contributed to the number of people in Spain turning down inheritances in 2023.

Another reason that Spaniards turn down their inheritance is because doing so would not work out worthwhile after paying tax on it. This one obviously depends on how much (and the form) you are left.

Inheritance tax in Spain is levied on a regional basis. For more information on the best and worst areas for inheritance tax rates, see our coverage below.

READ ALSO: Where are the best and worst places for inheritance tax in Spain?

In cases of property inheritance, people also turn them down due high maintenance or repair costs, or because a property cannot be sold.

It may also happen that the heir named in the will has their own outstanding debts and does not want the assets inherited via the will to end up in the hands of their creditors. In these cases, the inheritance is waived so that the inheritance passes onto someone else (more on that below).

Obviously, though probably less common, some heirs renounce their inheritance out of generosity. If the heir is already wealthy, he or she may wish the inheritance goes to a relative who needs it more.

Named heirs have the right to study the contents of the inheritance in order to decide whether to accept or reject it. This is known as the right to deliberate, which is a period of 30 days in Spain.

How to renounce an inheritance in Spain

There’s a particular process for renouncing an inheritance in Spain, and a few things to know.

Firstly, even if the contents of the will are known, it cannot be renounced until the person in question dies.

Note that the decision to renounce or accept an inheritance cannot be changed, so be absolutely sure of your decision first.

If you want to renounce it, you must turn it down formally, in writing, normally before a notary or in a court of law.

Who receives the rejected inheritance?

If the principal heir turns down their inheritance, a substitute may be named in the will who will receive the inheritance in his or her place.

If no substitute is specified in the will, the inheritance is distributed in the following order, according to inheritance law experts Simarro Herencias:

Descendants (children)
Ascendants (parents, if alive)
Spouse.
Siblings, nephews and nieces.
Other family members up to the 4th degree.
The state.

Url copied to clipboard!