Santander (Alliance and Leicester) are trialling a new fast track claims process

This is an update on our previous news story about how Santander are dealing with customer PPI Complaints.

Santander are trailing a new fast track claims handling procedure with certain claims management companies of which we one. The basic premise is that they are trying to complete their investigations within 48  hours of receiving the complaint. This is amazing when you think they technically have 8 weeks to carry out this process as per the FSAs rules on handling complaints.

Having been involved in this trial they are doing a sterling job and are telephoning us with the 48 hour period to make a verbal offer. This offer is then checked by us and relayed to the customer. If everybody is happy with the offer (We have not had to query one yet) then once the customer has accepted this in writing via their acceptance form Santander will then pay the customer their refund within 48 hours directly into their bank account.

PPI refunds from Santander (Alliance and Leicester) are still being processed as normal.

After the decision by the LLoyds banking group and  Barclays to stop processing PPI Claims due to the call for a judicial review from the BBA (see related article) it comes as a breath of fresh air that at least one Bank is to carry on as normal and keep on processing any claims from their customers.

Santander have distanced themselves from the other banks by sticking to the current FSA regulations. The flagrant breach of the FSA rules by the other banks is breathtaking and it will be interesting to see what teeth the FSA has actually got to bring these banks back into line. The FSA have not given the banks any waivers and the banks stance is in defiance of the FSAs statement that PPI Claims should still be processed even if a judicial review goes ahead.

Alliance and Leicester were fined £7 million pounds for their mis selling activities especially for Loans taken out between 14th January 2005 and 31st December 2007 which were conducted by telephone. So A+L doe have previous for mis selling of PPI but Santander are doing a very good job of cleaning up the mess and they are dealing with claims in a speedy and professional manner. This is in stark contrast to other banks, HSBC for example are taking up to 23 Weeks to settle claims which is obviously unacceptable.

Well done Santander.

More News

PPI Claims put on Hold by the Banks

The British Bankers association (BBA) have recently submitted papers to the High Court asking for a Judicial review of the new Financial Services Authority (FSA) rules regarding the handling of Payment Protection Insurance (PPI) complaints.

The new FSA rules are due to come into effect on 1^st December 2010 and they include new guidance on how providers should handle PPI complaints. The main reason that the bankers have lodged the court action against these new rules is that they may have to re open some of the 185,000 complaints that they have already turned down.

The FSAs response to BBAs request for a Judicial review states that they will “vigorously contest” this review as the new measures outlined in their policy statement offer a “fair and reasonable solution for consumers and the industry alike” 

In a further development Lloyds TSB group (which include Lloyds, Halifax and HBOS) announced on Monday that they will stop processing PPI claims until the Judicial review has been completed. We have spoken to Lloyds claims department and their staff have confirmed this. They will accept and acknowledge claims but not progress them. Also they have stated that they will be having a two week moratorium on progressing any current claims in their system, even if any offer has been made and accepted by the customer.

Today Barclays Bank have also come out and stated that they will also stop progressing any PPI Claims until the judicial review has been completed. 

Santander have stated that they will continue processing claims as normal throughout the judicial review.

The British Bankers' Association is going to court to challenge new rules on the way banks must handle complaints about payment protection insurance (PPI).

The association is asking the High Court to carry out a judicial review of the Financial Service Authority's rules on PPI complaints, which are due to come into force in December.