Santander & The PPI Scandal
The mis-selling of PPI dates back decades now and has meant that the likes of Santander have been forced to pay back millions to customers and settle large fines that have been sent their way as compensation for the moral, legal and ethical lapses they have shown.
What is Payment Protection Insurance and How Does It Work?
PPI was an optional policy that covered any financial re-payments on finance such as loans, mortgages, credit and store cards, should the policy holder find themselves unable to meet the required repayments the policy would cover the payments for them.
There are numerous circumstances that could lead to someone who may need to utilise their PPI cover, these include:
- Long-term Sickness
How Has PPI Hit Santander?
In 2016, Santander set aside more than £400m to cover more PPI claims; adding on to the £550m they’d already shelled out. This is a significantly smaller amount than most of the other banks have had to pay; Lloyds for example set aside 10 times this figure. However, this could end up being just a drop in the ocean after Santander paid out £25,000 to a mis-sold customer in regards to a claim it had already rejected. The claim was initially brought against Santander on behalf of a woman in connection to a Debenhams store card with PPI attached taken out back in the late eighties. GE Capital Bank, which was operating the Debenhams card at the time and was the UK’s biggest store card provider, was fined £600,000 by the financial regulator for mis-selling PPI – at the time it was the largest fine ever imposed by the City regulator in regards to the scandal.
5 biggest banks in the UK have set aside a further £32.6 billion to deal with the total compensation bill.
Source: FT Graphic
In March of 2016, Santander, which by now was operating the GE Capital Bank, responded to this PPI claim and suggested it was ‘unable to agree that the PPI policy was mis-sold’.
The complaint was submitted again in July of the same year, this time with the added information that the commission involved in the sale had been undisclosed and excessive. In the end Santander decided that there was a genuine case for mis-selling and awarded the customer a compensation amount of nearly £25,000.
‘How Can I Make a Claim Against Santander?’
Recent figures estimate that over half of all claims that are made without the guidance of a company like PPI.co.uk are rejected. This is because the claimant either hasn’t got access to the required information or because they don’t have the experience of dealing with the way Santander works.
You do have choices to claim back a refund for the cash that is rightfully yours. If you don’t have all the paperwork to hand, then don’t fret; ppi.co.uk only need your name, date of birth and the address of where you lived at the time the loan was taken.
Starting a Claim with PPI.co.uk
Cases of PPI are seldom the same, and some, mostly older policies are very difficult to achieve results on. We pride ourselves on our ability to navigate the tough policies and have built an upstanding reputation because of it. We have successfully claimed refunds for over 160,000 customers totalling of £274 million since 2007.
Because of our standing in the industry we have brokered a deal with the major banks and lenders, which means that we’re not required to submit anything more than a name, date of birth and an address at the time the policy was taken out. Once the banks have this information they’re able to access all their databases and determine if any PPI was added onto any finance that may have been taken out.
It’s quite easy to procrastinate and put things off until tomorrow but more often than not, tomorrow never comes.
So, if you believe that you have been mis-sold PPI,
it’s important to act now before it’s too late.
Claiming directly from Santander
When mis-selling became public knowledge, Santander customers were contacted informing them that they may have been part of the mis-selling that plagued the banking sector and they could be due a refund.
People were then able to contact Santander directly and forward on their details of the circumstances surrounding the sale.
Santander provided their customers with all the necessary PPI forms to fill out, according to Santander they require as much information as possible:
- Any PPI account policy numbers.
- Details of the key dates of the policy.
- Information about how the policy was sold.
- Employment status at the time the policy was sold.
- Details of any savings or other insurances you had when you took out the policy.
- What you took out the finance for and the amount you paid off.
If at first you don’t succeed, don’t give up
If you take the time to process your claim and you receive a rejection, then don’t give up. you have every right to contact the Financial Ombudsman. The FOS is an independent body that will assess your claims and decide if it’s worth pushing forward.
The Financial Conduct Authority (FCA), took over the policing of consumer credit in 2015. That means that anyone who has their initial complaint rejected by the provider then has the right to appeal to the Financial Ombudsman Service.
In a nutshell, what this means for Santander is that there could potentially be thousands of PPI claims that have been wrongly rejected and this latest development should spur those who were rejected to try their hand again.
You are running out of time
The FCA has announced a PPI ‘claim by’ deadline for 2019.
The big five banks have paid out £24bn in compensation so far and have set aside a further 32.6bn to deal with the estimated claims that will come forward between now and then. It’s estimated that the surge of claims could cause back logs so it is essential that if you feel you were mis-sold PPI at any time then you begin a free check with us today before it’s too late!
‘I’ve Been Sold PPI, was it Mis-Sold?’
Santander was one of many finance companies that sold PPI.
PPI policies were mis-sold in many ways. This began to happen after the banks realised how profitable PPI was and using this knowledge they instructed their employees to sell PPI any way possible, even knowing that in some instances it wasn’t an appropriate product for everyone.
Adding On: In many cases, PPI was added onto policies without the customer’s knowledge and was being hidden away within the monthly repayments. underhand sales techniques: Sales Advisors would often use ‘hard ball’ sales tactics when it came to attaching policies. An example of this would be when customers were given a list of problems that could occur if they didn’t buy the insurance. Ineligible Customers: The PPI policies sold in a lot of cases wouldn’t cover the individual and leave people unable to claim on a policy should something effect their ability to earn money, rendering the policy useless.
PPI Was Optional: Failure to clarify to the customer that a PPI policy was optional and they were free to opt-out is a major sign of mis-selling. Many Santander customers only agreed to the policy because they were told that it was a non-optional part of the credit process.
The Beginning of a Scandal
The issues with PPI were raised very early in the late nineties by the well-known consumer magazine Which? – with the group questioning the product’s value; both in price and in how it could potentially be useless to certain customers. Despite these issues, PPI policies were still being sold by financial outfits all over the country. In fact, it wasn’t until the mid-2000’s that the Financial Standards Authority (FSA) finally released a report on PPI and the poor practices that were being used to peddle them.
In 2006, smaller finance companies were beginning to find big fines at their doorstep for their role in the mis-selling of policies. A year later, there was a big movement in the kinds of companies that were handed fines – the big banks that believed themselves untouchable were seeing that their indiscretions were becoming public knowledge and fines well into the millions were quickly following. This included a 2014 fine for Santander to the tune of £12.4million for ‘serious failings’ in the advice they were providing their customers.
Research in the late nineties showed that over 2 million people in the UK had been paying for policies that they had little to no chance of being able to claim on. More than 1 million people were believed to have been sold an insurance policy after being told that that was the only way that they could be approved for credit, which is of course not true.
UK mis-sold PPI scandal statistics
£10 BillionIn payouts alone in the UK.
By 2008, 20 million PPI policies existed in the UK that’s nearly 1 in 3 of the 2008 UK population