Santander and PPI Claims
Santander hit the headlines in August 2011 after confirming their pre-tax profits had been sliced in half as a result of compensation payouts for mis-sold PPI. The bank set aside £731 million to cover PPI claims.
The Spain-based company bought Abbey National in 2004, Bradford & Bingley in 2008, and Alliance & Leicester in 2010.
Could I claim PPI compensation from Santander if I was mis-sold the policy by Abbey?
Yes, if you can prove you were mis-sold a payment protection insurance policy by Santander, you could make a claim.
Santander are liable for any payment protection policies that were mis-sold by Abbey, in the same way that you would have to continue making repayments on a loan taken out before the company was taken over.
There is a common misconception that there is a 6-year ‘time limit’ on PPI claims, which would render claims for policies sold by Abbey invalid. In actual fact, 6 years is simply the period for which your bank is obliged to retain your paperwork. As long as you still have the paperwork, you could potentially still make a claim.
What qualifies as a missold PPI policy?
Until recently, PPI mis-selling was a major problem in the financial services industry. You could make a claim if one of the following applies:
- You were never made aware you were paying for PPI.
- You were incorrectly made to believe that PPI was mandatory.
- You were led to believe taking PPI would reduce the cost of borrowing the money.
- You had a policy in place already that offered the same cover.
- You would never have been eligible to make a PPI claim due to the conditions of your policy.
What should I do now?
The banks were recently ordered to begin contacting customers they believed they had mis-sold PPI to in order to inform them of the situation, the cost it had to them and how to proceed with reclaiming the money they lost.
If you have a letter, there will be clear instructions relating to how you should go about claiming directly with Santander. Of course, this doesn’t mean that you have to go direct. You could still choose to use the services of a claims management company, but remember this is likely to incur a fee.
If you have not received a letter from Santander about your PPI policy, it does not mean that you are immediately ineligible. If you believe you were mis-sold a policy, it is still worth pursuing. Either contact Santander directly, or seek the services of a claims management company if you do not want to deal with it yourself. We reiterate again, though, that using a claims management company will incur fees.