Santander finds itself in a Citi moment with $175 million error

As Santander looks to claw back roughly $175 million it mistakenly paid to British customers on Christmas Day, it can look to Citi, on a basic level, for what to expect, what to avoid and what to ask itself.

Citi’s manual transfer of $900 million in August 2020 to creditors of the cosmetics firm Revlon is likely the highest-profile recent case of a bank making an errant, nine-figure payout from its own reserves.

For Santander, the $175 million represents duplicate payments. About 75,000 people and companies received one-off or scheduled payments from 2,000 businesses — in many cases, their employers or suppliers — that have accounts with the bank. Then, they received a second identical payment from Santander.

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