Santander, the country's second biggest mortgage provider, says 30,000 of its customers may be due compensation, after errors made in 2008. All were former Abbey customers, who were put on standard variable rate (SVR) mortgages after coming off fixed-rate deals. But they were not told clearly enough that they could have transferred their accounts elsewhere. Santander has already set aside £232m to cope with this and other issues.
In December 2008, the Bank of England cut base interest rates by one percentage point. But instead of passing on that cut in full to its SVR customers, Abbey reduced its interest rate by just half a percentage point.
It should have then made it clear that customers were free to move, penalty-free, to other mortgage providers.....Read more here