PPI claims against Santander will continue to be processed during the forthcoming judicial hearing according to a spokesperson from the bank.
Santander has been widely criticised this year for its lack of customer service, and the bank is attempting to improve its public image by not supporting the British Bankers Association challenge to the Financial Services Authority´s new regulations for retrospectively processing PPI complaints.
While the majority of banks and credit providers in the UK will be putting PPI claims on hold, PPI claims against Santander will be processed as normal and customers´ complaints should be responded to within the eight week timeframe.
The Santander spokesman said: “We are not involved in the legal action being pursued by a number of UK banks with regards to PPI. We will continue to deal with any issues our customers put to us regarding PPI [claims against Santander] in accordance with FSA rules.”
One of the reasons for the bank´s willingness to process PPI claims against Santander during the judicial review is that the bank sold far fewer PPI policies than its High Street rivals. Consequently there are likely to be far fewer PPI claims against Santander are anticipated against Barclays, Lloyds TSB and NatWest.
The processing of PPI claims against Santander throughout the judicial review is likely to provide a thorn in the side of the British Bankers Association, which is appealing against new FSA regulations that would enforce retrospective PPI compensation to customers who were mis-sold PPI prior to 2008.
If the legal challenge by the British Bankers Association is unsuccessful, thousands of customers would be eligible to claim compensation for being mis-sold PPI in the past – potentially costing the British banking industry billions of pounds.
The FSA has said that the new PPI regulations are necessary to restore consumer confidence in the banking industry. The city watchdog has already issued fines worth millions of pounds for the mis-selling of PPI and a spokesman said “We will be monitoring the implementation of our guidance closely to ensure real change is delivered”.Read More