Will £25,000 payout spark new PPI claims spree? Exclusive for Daily Telegraph

Iona Bain

Santander has quietly paid almost £25,000 relating to a PPI complaint it had previously thrown out, potentially paving the way for millions of customers to reopen complaints previously dismissed.

The case is thought be the first instance of a bank accepting fresh grounds for a PPI (payment protection insurance) complaint following a landmark legal case a year ago.

Santander has denied any link between its change of heart in this case and the ruling – but it has declined to explain why it first refused the claim and then offered to settle.

Consumers, meanwhile, are being urged to check old accounts and cards, especially as the “window” for all PPI claims is likely to close in 30 months’ time.

The case in question

The claim against Santander was first made in January this year by a Hampshire claims firm on behalf of a Surrey woman in connection with a Debenhams store card taken out in 1989. PPI was sold alongside it.

GE Capital Bank, which 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 mis-selling PPI – at that time by far the largest fine imposed by the City regulator over the scandal.

However, in March, Santander, which bought the GE business in 2009, responded that it was “unable to agree that the PPI 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.

At the end of September the customer was astonished to receive a letter from Santander offering £24,207.

To find out whether YOU could be eligible to complain, read the rest here

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