SANTANDER is to contact 270,000 customers about unclear information it gave before increasing the cap on its mortgage standard variable rate in 2008.
City watchdog the Financial Conduct Authority (FCA) came to the agreement with the lender after arguing the letters sent to notify customers at the time were not clear enough. Those affected were all customers of Abbey in December 2008.
Meanwhile aggrieved customers of other banks are calling on the FCA to let mid-sized firms use the interest rate swap misselling redress scheme. Lawyers Manches told the Sunday Telegraph they hope to be able to join small firms in applying for compensation.