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(Alliance News) - Banco Santander SA was accused by a claims company of attempting to reduce the amount it pays to customers who were mis-sold payment protection insurance, the Financial Times reported on Wednesday.
The bank told claims management companies that it would send documentation to customers directly, rather than going through claims companies, according to an email seen by the newspaper.
Claims management companies handle customer complaints and, in exchange, receive a portion of the compensation.
According to the FT, the move was made by the bank in order to "streamline our investigations", though Santander's critics said this measure would reduce payouts.
Chief executive of the Alliance of Claims Companies, Simon Evans, told the FT: "It is a particularly underhanded move because there are many consumers who wish to use a third party to help and assist them in their claims, and they are happy to pay to do so.
"Who are Santander to ignore the authority given by customers claims management companies and say they will no longer deal with the third party?”
https://www.ft.com/content/9032df8a-d3e1-11e9-a0bd-ab8ec6435630
Shares in Santander closed 2.9% higher at EUR3.7205 in Madrid on Tuesday.
Several banks have already announced that PPI claims soared in the lead up to the August 29 deadline, including Barclays PLC which on Monday said it will increase its payment protection insurance provisions by up to GBP1.60 billion.
