PPI in Spain via Santander

dougiewombat

Hi - some years ago (2004) I bought a villa in Spain for cash. When I got divorced in 2007, I raised a mortgage from Santander in Spain against this property to make a payment to my ex-wife for her share in the property. For the next 4 years I lived in the villa in Spain and commuted on a weekly basis to the UK to work in London.

As part of the mortgage, I was sold an insurance policy; this was written in spanish (which I cannot read or speak) and I dealt directly with the spanish branch bank manager. I actually thought that this policy was for Buildings & Contents, but I subsequently discovered through a claim for sewage flooding in early 2011, that this was already included in the mortgage repayment, and that the separate policy (which cost 130 euros per month) was for unemployment cover.

Through ill health, I was actually unable to work for all of 2011, so when I discovered that I had unemployment cover, I thought my luck had turned. However, on enquiry at the bank (in July 2011) I was told that the policy was worthless because I worked in the UK rather than in Spain. However, the bank branch manager knew this when I took out the mortgage and it was documented in the deeds to the mortgage. I terminated the insurance policy September 2011 (giving the required notice) so I paid 130 euros per month for nearly 4 years for a policy that was worthless in my circumstances, and the bank knew this and didn't tell me. Do I have a claim against Santander (Spain)?

System

Don't know, You need to find somebody who knows the Spanish regulations on PPI and mis-selling.

I doubt very much whether you can chase it through the UK side of the company.

societys_child

I agree, has nothing to do with Santander UK

dunstonh

Do I have a claim against Santander (Spain)?

PPI is an issue with the UK regulator with sales in the UK. The FCA does not regulate spanish sales. You are free to complain to the bank in Spain but don't expect UK regulations and compliance to be mirrored in other countries.

roonaldo

You need to complaint to whoever in Spain.

BabblyDom

Santander Uk and Santander Spain are 2 very different entities so complaining in Uk won't get you anywhere.
A few question : Are you absolutely sure this insurance didn't cover you for unemployment because you work in the UK. You see, I am not absolutely sure of that as this would depend where your main residence was and where you paid your taxes. Eventhough you paid your income tax on your earned income in England, if you were a Spanish resident, you would have had to do a tax return in Spain and then your insurance would in my opinion be valid. Were you covered by Spanish national health??
Now, don't bother going and see a lawer in Spain, not speaking the language !!! You would need an international lawyer. And things can get heated and difficult and you might end up wasting more money and be taken for a ride!!!

What you can do is take the following steps.
1) do you have the name of the guy who got you to sign this insurance
2) Can you contact a consumer association with some kind of help adviser who has been ripped off by the same type of insurance policy
3)Via another insurance, house insurance for example, do you have free legal advise and help included
Now, I don't know the rules in Spain (I do speak Spanish though) but I know they have a lot of things in commun with French rules.

If you have been sick then you were not unemployed, therefore this insurance would have told you that you would not quality, as being unemployed and been sick is a very different matter in southern Europe. However, it might be mandatory as part of your mortgage to have an invalidity cover, or long term illness cover and that you might still be able to claim providing you can prove you were off sick for most of the year (you need some social document, medical expertise etc...). (as opposed to unemployment cover which is not mandatory, Long term illness cover is)

I would write to the head office at Santander (a registered letter) and tell them how angry you are at having been taken advantage of etc..) and see if you get somewhere. Try to write to a senior manager and mentioned names and branches without hesitation and tell them you are going to take the necessary steps blabla, you might get somewhere like that).
Good luck.

Thrugelmir

I was sold an insurance policy; this was written in spanish (which I cannot read or speak) and I dealt directly with the spanish branch bank manager.

Onus was on you to seek advice. Even if it's just the translation of documents. Ignorance is no excuse.