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.................Payment protection insurance ruling awaited
Originally posted by 5corpio
Nearly three million people are awaiting a court ruling which could have a major impact on compensation for past loan insurance sales.
The Financial Services Authority (FSA) has been challenged by UK banks over retrospective compensation for the mis-selling of Payment Protection Insurance (PPI).
A judicial review was heard earlier in the year. The High Court is expected to give its ruling on Wednesday.
PPI policies are supposed to repay people's loans if their income drops because they fall ill or lose their jobs.
The banking industry has been accused of mis-selling them on a huge scale, generating many millions of pounds in profits by selling insurance that people were unaware they were paying for or did not need, or on which they could not claim.
The judicial review, which started at the end of January, refers to new FSA rules that require firms to review past sales, which could lead to compensation worth £2.7bn being paid to 2.75 million people.
The rules said that banks would have to review past PPI sales, even where customers had so far not complained, potentially landing the banking industry with the......Read more HERE
The Financial Services Authority (FSA) has been challenged by UK banks over retrospective compensation for the mis-selling of Payment Protection Insurance (PPI).
A judicial review was heard earlier in the year. The High Court is expected to give its ruling on Wednesday.
Rules
PPI policies are supposed to repay people's loans if their income drops because they fall ill or lose their jobs.
The banking industry has been accused of mis-selling them on a huge scale, generating many millions of pounds in profits by selling insurance that people were unaware they were paying for or did not need, or on which they could not claim.
The judicial review, which started at the end of January, refers to new FSA rules that require firms to review past sales, which could lead to compensation worth £2.7bn being paid to 2.75 million people.
The rules said that banks would have to review past PPI sales, even where customers had so far not complained, potentially landing the banking industry with the......Read more HERE