I have received a letter from Alliance & Leicester. What should i do?

In 2008, the Financial Services Authority (FSA) imposed a fine £7 million on Alliance & Leicester for the large-scale mis-selling of PPI policies by the phone. They accused the A&L of having not made it clear for the consumers that the PPI is optional. Besides, the FSA blamed it for training its staff to press the consumers when they have doubts about PPI payment inclusion necessity or disagree with the consultants’ recommendations.

Santander bought Alliance & Leicester out in 2008 and finally took it over in 2010. It has been operating as the trading name of Santander until the last year when full incorporation.

Alliance & Leicester used to offer mortgages, personal loans, and credit cards through a partnership with MBNA.

If you took out a loan, mortgage, or credit card before the company absorption, the PPI could have been sold without your confirmation or under the false pretext. In this case, you can reclaim the PPI from Alliance & Leicester.

WHAT defines the mis-sold PPI?

Below you can see some questions. If you can answer in the affirmative to any of them, you may consider yourself a victim of PPI mis-selling.

  1. Do you think that the advice given on your PPI is invalid and useless?
  2. Do you feel you have suffered from injustice?
  3. Alliance & Leicester has not informed you that PPI is not obligatory?
  4. Did they offer you a PPI assuming that thereby the interests on the loan, card, or mortgage would be lower?

There are some other regulations the company has to follow while selling the PPI.


The FSA has recently issued the instruction for banks and PPI providers on how to write the letters, addressing to people they mis-sold PPI. Therefore, you may have received a letter from Alliance & Leicester regarding your PPI policies. In this letter, the bank has to state the situationestimate your wastage, and set recommendations on further money reclaim.

There are two ways out. First, as instructed, you can contact your bank directly. Alternatively, you can deal with a claims management company. However, the latter case may acquire a fee.


If you believe you have a mis-sold PPI policy from Alliance & Leicester, but you have not received a letter from the provider, you should contact the bank to get a picture of the situation and get to know what rights you have.

Just as other providers, Alliance & Leicester received instructions to send letters to consumers who may have got mis-sold PPI.

The number of consumers with mis-sold PPI notably goes beyond the number of those who receive the letters.

Briefly, either contact Alliance & Leicester directly or use the services of a competent and recognized claims management company. However, note the services require a fee.