The mortgage endowment complaints relate to the period between October 2001 and September 2003, and the 'Dear CEO' letter in April 2002.
Abbey accepts that its complaints handling procedures for mortgage endowment complaints during this period were inadequate. Although a detailed investigation of cases from every quarter in the four-year period between 1 January 2001 and 31 December 2004 has not taken place, Abbey accepts that it is likely that there were similar levels of failure to handle cases correctly throughout that period.
Abbey also accepts that its inadequate processes around handling mortgage endowments complaints were the reason it unknowingly supplied incorrect information in the response to the 'Dear CEO' letter.
Abbey has said it takes this extremely seriously and continues to fully review its complaints handling policies and procedures. It has established a single complaints handling function, undertaken extensive training of staff, and introduced new processes that are being continually assessed by independent experts to ensure customers get the right outcome to their complaints.
Abbey says it has widened the scope of its review to cover all complaints from 1 January 2000 to 25 May 2005. This covers the whole period when complaint numbers increased in response to reprojection letters indicating that policies may not provide sufficient funds to repay the full mortgage loan.
Abbey received around 80,000 complaints in this period. It is reviewing all those it previously rejected, except those cases that have gone to the Financial Ombudsman. The total number of cases being re-examined is around 50,000. Abbey will write to those customers affected by 22 June 2005, and expects to have completed the review by the end of the year.
The review only includes previous complaints about policies that Abbey sold and advised on, such as Abbey National Life. Scottish Mutual and Scottish Provident endowment policies were sold through third parties, and any complaints about these policies should be addressed to the firms that sold them.
Abbey notes that the FSA has credited it with a high level of co-operation and a willingness to remedy any consumer detriment. It also notes that the FSA says that Abbey's new owner, Banco Santander Central Hispano, has demonstrated its commitment to treating customers fairly by supporting a comprehensive redress package for customers who have been disadvantaged.
