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Santander sets aside £232m for ‘customer conduct issues’

Santander 480

Santander UK has set aside £232m to deal with undisclosed “historic customer conduct issues”.

The bank announced the provision in its quarterly management statement for the nine months to the end of September, published yesterday.

It is unclear what products the provision relates to, although Santander UK says the amount is separate to the £731m it set aside in June 2011 for compensation relating to payment protection insurance misselling.

Money Marketing understands the provision is connected to interest rate swaps sales by the bank and sales of identity fraud insurance.

Santander UK says: “In September 2012 a provision of £232m was made in relation to conduct remediation for historic customer conduct issues and in the light of an evolving regulatory environment.

“As previously announced, the results for the nine months ended September 2011 were impacted by a customer remediation provision of £731m made in June 2011, relating principally to PPI. No additional provision relation to PPI has been required or made to date in 2012.”

It emerged yesterday that Santander’s decision to abandon a deal to buy 316 Royal Bank of Scotland Group branches cost the bank £52m.

Santander made a £1.1bn pre-tax profit for the first nine months of the year, up 4 per cent from £1.06bn at the same time last year. Over the same period its share of the UK mortgage market fell from 16.3 per cent to 10.8 per cent, while gross lending fell 32 per cent.

Chadney Bulgin mortgage partner Jonathan Clark says: “In the current age, it seems it is only a matter of waiting for the next wave of misselling to come around the corner. Banks’ reputations are in tatters because they just do not look after people properly.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. With Santander’s past record of poor administration and even worse customer care it could be anything. I doubt that it will be compensation for their appalling treatment of business introducers

  2. You know you are ripping customers off when you stock pile money for compaints that haven’t happened but plan on.

  3. “Santander UK has set aside £232m to deal with undisclosed ‘historic customer conduct issues’.”

    Another mealy mouthed piece of waffle from Santander, and an example of the growing trend of using weasel words to hide what is really meant.

    “Historic customer conduct issues” makes it sound as though customers’ conduct has caused a problem, i.e. that customers have been misbehaving in some way.

    “Historic abuse of customers due to the conduct of Santander advisers” is the way it should read, because that is exactly what it really means.

  4. Customer conduct ? This is disgusting,

    More likely Abbey National/Santander staff misconduct issues !!!!!!!

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