Santander and the PPI Scandal
Just like the other big lenders, Santander has been caught up in the scandal and has had to pay out considerable sums of money to it’s customers in compensation. As a group they have also been under fire for their conduct and have been fined by the regulator, the Financial Conduct Authority (FCA).
What is PPI and how does it work?
PPI has been made out to be a complicated product that is hard to understand. This is not the case. Simply put, it is a type of insurance policy that covers the policyholder to meet their mortgage, loans and credit card repayments if they are not able to work due to redundancy, long-term sickness or injury. The policy should be sold as an optional add-on to the types of financial products already mentioned.
Was my PPI policy mis-sold to me by Santander?
Many PPI policies were sold correctly however, in many instances the policies were mis-sold.
There are a variety of ways in which your policy may have been mis-sold – the common methods of mis-selling are listed below:
- The PPI policy was added to a finance agreement without your consent or knowledge;
- The lender falsely claimed that the PPI was compulsory when taking out the loan, mortgage or credit card;
- The lender didn’t explain how much the PPI cost;
- The PPI policy did not cover the entire loan amount or the fill repayment period;
- It wasn’t explained to you that the policy does not cover those who are self-employed.
If any of the above situations apply to how you were sold your PPI policy, you may be entitled to compensation. Complete the free PPI check form to find out more.
Which Santander Products Was PPI Sold With?
Which Brands Have Santander Sold PPI Under?
- Abbey National:
- credit cards
- Alliance & Leicester:
- credit cards
- Cater Allen
- First National Motor Finance
- First National Wagon Finance
- HBOS (Unsecured Personal Loans)
- JP Morgan Classic Deferred Debit
- National & Provincial
- Santander Credit Cards
- B and Q
- Boundary Mills
- Budget Tyres
- Country Casuals
- Dorothy Perkins
- Edge Card
- Ernest Jones
- First National Tricity Finance
- First Personal
- GE Capital
- High and Mighty
- H Samuel
- Harvey Nichols
- House of Fraser
- IONICS- Store Card
- Kwik Fit Finance
- Laura Ashley
- Leslie Davis
- Lombard Tricity Finance
- Miss Selfridge
- New Look
- Owen Owen
- Paypal- Store Card
- Power House
- Racing Green
- River Island
- Russell and Bromley
- Time Retail Finance
- Toys R Us
- Value Direct
- Wade Smith
Who can I make a PPI claim against?
If you were mis-sold PPI on a loan, credit card or mortgage taken out through any of the above-mentioned providers you should be able to claim compensation from Santander.
How was the PPI scandal revealed?
PPI was a product sold daily by banks, building societies and other financial services providers to customers to ensure they could meet their monthly payments if they were ever unable to work due to accident, sickness or unemployment.
When sold in the right way PPI was a useful product and beneficial to those who had it. Unfortunately, it came to light that this wasn’t always the case and many people were sold PPI who wouldn’t be covered by it.
With the sales of PPI policies increasing, banks and other lenders realised how profitable a product it was. PPI sales were netting billions of pounds each year with very little being paid out. This went on for many years until the Citizens Advice Bureaux conducted research into why so many policies had been sold and so little had been paid out in comparison.
In 2005 alarm bells started to ring and Citizens Advice published a report on their findings – that PPI was in effect a ‘protection racket’ and they lodged a ‘super complaint’ with the Office of Fair Trading (OFT).
The report highlighted that for an expensive product only 15% of consumers would be able to make a successful claim should the need arise.
Around this time the then UK regulator, the Financial Services Authority (FSA) launched their own investigation, which revealed poor PPI selling practices and little compliance control. However, what wasn’t known at this stage was the scale at which the mis-selling had taken place and what was to come.
How has the PPI scandal affected Santander?
The start of 2018 saw an announcement by Santander that they are to increase their provision for mis-sold PPI by setting aside another £40m. This decision was made after a surge in claims since a TV campaign by the FCA in the summer of 2017.
This latest provision is in addition to the £400m Santander set aside in 2016 to meet mis-sold PPI claims and the sum of £550m that had already been paid back to customers previously.
How long do I have to make a claim with Santander?
You need to act quickly as the FCA set a deadline, 29 August 2019, by which all claims for mis-sold PPI must be made by.
It was predicted that the deadline may cause a huge influx of claims to be dealt with, leading to a backlog.
The latest figures from the FCA show that there certainly has been an increase in the number of claims being processed and payments awarded. Since July 2017 there has been a month on month increase in the amount of payments awarded to mis-sold PPI claimants.
Did Santander mis-sell me PPI?
If you ever had any of the following finance products from Santander, there is a possibility you may have been mis-sold PPI as these products were sold with PPI:
Santander PPI & Frequently Asked Questions
Read our frequently asked PPI Claims related questions and answers. In the majority of cases the first step to making a PPI claim is to get a PPI check done with the lender. We offer this as free standalone no obligation service, find out How to start your FREE PPI Check** with us today.
The PPI was intended to cover the monthly payments for the above products if you were unable to work due to sickness, redundancy or injury. However, the policies failed to pay out when needed.
You may have been mis-sold PPI by Santander if any of the following happened:
- You didn’t know that the PPI had been added to your loan, credit card or mortgage;
- You were not informed that the PPI was an optional add-on;
- Santander employees didn’t check to see if you already had cover;
- The cost of the PPI had not been explained to you or how much of the premium would be paid as commission to Santander;
- You were pressured into taking out the PPI by the salesperson;
- You were led to believe that your application would be rejected unless you took out the PPI.
If any of these situations arose when you bought the PPI, you were probably mis-sold.
How do I know if I had PPI with Santander in the first place?
Your documents may not state PPI, however, there are other terms that the insurance is know as. If you see any of the following terms on your documents, it could be PPI:
- Loan care;
- Payment cover;
- Protection plan;
- Loan protection.
What could I be entitled to from Santander if I was mis-sold PPI?
If you can establish you were mis-sold PPI, you may be entitled to:
- A refund of the premiums paid;
- A refund of any interest charged;
- Compensation of interest at 8% per year on the sums from the first two points.
There are factors that will affect the outcome of your claim and how much you will receive such as:
- The number of accounts with PPI you have - it depends on the type and number of credit agreements you have in place and the value. The more accounts with PPI you have, means you will have made multiple PPI payments each month. When added up these payments will be the total amount you may be able to claim.
- Credit card accounts – the PPI added each month to your credit card statement is a percentage of the outstanding balance. If your balance was always close to the limit on your credit card, you could expect a reasonable amount back when you claim for PPI compensation.
- Length of time you had the account – the longer you’ve had the account and paying the PPI premiums the more you will get back when you put your claim in.
What is Plevin?
The name Plevin has been mentioned in the media, so it may be familiar to you, and could have an impact on your claim.
Plevin refers to a Supreme Court case that looked at the amount of commission charged by Paragon Personal Finance for PPI which formed the overall cost of the premium.
It was during the case that the claimant, Plevin, discovered the PPI premium she had paid was made up of 71.8% commission, which had not been disclosed to her. Had she known how much commission was involved she would never had taken out the agreement.
In June 2014 the Supreme Court ruled that Plevin had been mis-sold PPI and that the relationship was unfair contractually under the Consumer Credit Act 1974.
Does Plevin affect me?
If your finance provider earned a high level of commission from your PPI, which you knew nothing about, you can make a claim.
This won’t be possible if you have already had your PPI payments refunded. The Plevin ruling will not affect you as you’ve had back all that you paid.
However, if your mis-sold PPI claim was rejected you may be able to complain about the commission if:
- You took out the finance the PPI was sold with on or after April 2007;
- The finance with the PPI was sold before 6 April 2007 and was still in place on or after 6 April 2008.
Since the Plevin decision, there has been an interesting development in cases going before the courts. The case of Doran v Paragon Personal Finance June 2018, was decided by a District Judge in a County Court. He awarded the claimants all their high commission payments back plus interest.
The case of Doran does not set a precedent, like Plevin case does, as it was decided in a lower court and may yet be appealed by Paragon Personal Finance.
Customers who have already been successful in their claims for mis-selling cannot claim under the Plevin rules. This will still apply after the recent Doran case. Lenders will only consider claims for undisclosed commission if the customer has been rejected for a mis-sale.
If you feel that you have paid high commission for a PPI policy, you may be entitled to compensation, please complete our online PPI High Commission Check Form.
Next of Kin Mis-sold PPI Claims
An area of mis-sold PPI that is often overlooked because many people do not know about it is claiming on behalf of a deceased spouse or other family member who has passed away. For example, if you knew your spouse was paying for PPI before they passed away and you have concerns if it was mis-sold, you should find out as you may be entitled to claim it back.
Each month a sum of money was paid for a PPI policy that covered the policyholder should they repayments become unaffordable because of illness, accident, redundancy or death.
The PPI policy would have been sold by a bank, building society or other financial provider such as an insurance company or broker.
There have been many cases of banks, lenders and other providers selling PPI to customers who would never be able to claim on it.
The are several situations that could apply to your spouse or family member that would make them ineligible for PPI. These include:
- Having a pre-existing medical condition or if someone was;
- Being self-employed or retired at the time of taking out the cover;
- Public sector workers, civil service workers and those in other similar employment may have protection through their employment contracts, so did not require PPI;
- Some customers were not aware that they had PPI as it was added on with their consent or knowledge;
- Customers being led to believe the PPI cover was compulsory when it was optional, indicating that they didn't understand what the cover was for.
If you, as an executor, personal representative, or next of kin know or suspect that any of the above situations applied to your late spouse or family member, look further into it as there is a strong possibility that the PPI was mis-sold.
Here's what you need to do:
- Establish if your spouse or family member was paying for PPI on a credit card, loan or mortgage.
- Try and work out if the PPI was mis-sold based on the situations described above.
- Decide how you want to pursue the claim: yourself or by using PPIClaims.co.uk. By using PPIClaims.co.uk we do all the hard work, so you don't have to.
If you think there may be PPI on any loans or credit agreements that were take out by a deceased spouse or family member it is worth getting a FREE PPI check done to know for sure.
What information do I need to claim against Santander UK?
If you think you have a claim against Santander UK for the mis-selling of PPI, you will need to provide as much information about the policy you had. The following information will help Santander UK to process your claim:
- PPI account policy numbers.
- The dates of when you took the policy out and how long you had it.
- How the policy was sold to you.
- Your employment status when the policy was sold.
- If you had any savings or other insurances in place at the time of taking out the policy.
- The reason for taking out the finance and how much you paid off.
How much compensation could I get from Santander?
Many mis-sold PPI claims are successful. According to the FCA the average PPI pay-out is £2,000 however the amount you get back depends on what type of PPI policy you had and how much you paid for it – each case is unique.
How long does the claims process with PPIclaims.com take?
The start of a claim is the pre-submission stage. From the time of the request being sent to the lender, to getting a response that determines your PPI status, will take on average six weeks.
The average time frame for a claim from getting an acknowledgement from the lender to getting a decision is approximately 8-16 weeks.
How Do I Start my Santander PPI Claim With PPIClaims.com?
We’d like to discuss the details of your case with you, so your complaint can be lodged with Santander on your behalf as quickly as possible.
Organisations Who Can Provide Information & Help On Santander PPI Complaints
There are some regulatory bodies who can offer information and assistance regarding PPI: The Financial Conduct Authority, the Financial Ombudsman Service and the Financial Services Compensation Scheme.
The Financial Conduct Authority
12 Endeavour Square
Tel: 0800 101 8800
The FCA are the finance industry regulator, whose role it is to protect consumers. They will provide general information about PPI but cannot offer advice on an individual basis.
The Financial Ombudsman Service
Tel: 0800 023 4567
The FOS provide a free, independent dispute settlement service between financial businesses and their customers. They can deal with a wide range of finance based complaints including PPI.
Financial Services Compensation Scheme
PO Box 300
Tel: 0800 678 1100
The Financial Services Compensation Scheme(FSCS) may be able to offer compensation if a PPI provider you purchased a policy with is no longer trading, providing they were an authorised financial business.
Other organisations who can also help are:
168 Corporation St
Tel: 0344 477 1010
Citizens Advice have offices across the UK. They provide free, confidential and independent advice to help people overcome their problems.
The Money Advice Service
Tel: 0800 138 7777
The Money Advice Service was set up by the government to help people manage their money by offering free and impartial advice.