The latest PPI related scandal has revealed that Santander has quietly paid off £25,000 relating to a PPI complaint that it had previously thrown out. This could prompt a further scramble of customers attempting to re-open claims that were dismissed by the bank.
This case is thought to be the first instance of a bank accepting fresh grounds for a PPI complaint, which follows on from a legal case a year ago.
Despite denying that this case is related to the ruling, Santander would not outline the real reason for the change of heart and offered to settle the claim.
This particular claim relates back to a woman who took out a store card from Debenhams in 1989 with PPI sold along with it. GE Capital Bank, ran the Debenhams card at the time and was Britain’s biggest store card provider was fined £600,000 by the regulator in 2008 for PPI mis-selling. However when 2009 Santander purchased GE in 2009 it claimed there was no evidence to suggest the policy was mis-sold.
The complaint was resubmitted in July, this time claiming that the commission involved in the sale of the policy had been undisclosed and excessive. This was when the customer was offered £24,207 in compensation from their claim.
So Why Did Santander Change it’s Mind on the Claim?
After the Financial Conduct Authority began policing the consumer credit act it meant that anyone who had a claim rejected has the right to complain to the Financial Ombudsman Service.
Last November the Supreme Court ruled that failing to disclose a large commission on a PPI sale created an unfair relationship under the Consumer Credit Act and this is the most likely reason that the Santander claim has been
We expect the PPI claim-by deadline to be enforced around the Spring/Autumn of 2018. So we urge anyone who has had a claim rejected by the lenders not to give up and process another one or check old credit accounts as soon as possible.