Alliance & Leicester have been fined a record £7m by the City Watchdog for three years of mis-selling PPI (payment protection insurance) to customers. The Financial Services Authority (FSA) advised that the failings of the bank were the most serious they had ever seen (as of 2007). Failings included the banks training methods to put pressure on customers who questioned the addition of the optional PPI in loan quotes and telephone advisors giving sufficient details of the overall cost of PPI.
Director of enforcement for the FSA Margaret Cole said that the bank’s customers should be able to rely on impartial advice based on their individual circumstances, and not for staff to recommend insurance that customers may not want or need.
After Alliance & Leicester were bought out by Banco Santander they advised they would be writing to customers who took out the PPI policies and review any previously rejected complaints and claims by customers who think they were mis-sold PPI with their loans where appropriate.