FSA to contest BBA's Judicial review of new PPI complaints..

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http://www.fsa.gov.uk/pages/Library/Com ... /153.shtml

FSA to contest the BBA's judicial review of new PPI complaints handling measures:


FSA/PN/153/2010
8 October 2010

The Financial Services Authority (FSA) will contest the British Bankers’ Association’s (BBA) judicial review of new payment protection insurance (PPI) complaints handling measures.
In the interests of consumers, firms will be expected to continue handling complaints while this process is ongoing. If consumers are unhappy with how their complaint has been handled they may refer it to the Financial Ombudsman Service (Ombudsman).

In the last five years there have been more than a million complaints made to firms about PPI. In 2009/2010 alone, customers referred 49,196 complaints to the Ombudsman which then upheld nine out of ten in the complainant’s favour.

Since the FSA took on regulation of PPI in 2005 it has taken enforcement action against 24 firms for sales failings. The FSA has carried out three thematic reviews, issued warnings, halted the selling of single premium PPI with unsecured personal loans and visited over 200 firms in order to improve the market.

The FSA strongly believes that the package of new complaint handling measures outlined in policy statement 10/12 is a sensible and fair solution for consumers and the industry alike.

And that is why the FSA will vigorously contest the BBA’s judicial review of the new complaint handling procedures for the PPI market.

Notes to editors
Policy Statement 10/12.
The FSA regulates the financial services industry and has five objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.

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Re: FSA to contest BBA's Judicial review of new PPI complain

Right, some of you may have ongoing reclaims, with the FOS or maybe directly with the banks, the rumours were since the above news in the media via FSA/FOS & BBA, is that some customers had been verbally told that they have already blocked PPI complaints until due course, but fortunately its not the case.

The banks have not up to now been given a waiver for this and have to apply before doing so.

Nothing have yet been confirmed (up to now) in black and white) that they have stopped/blocked investigating at this time, so continue to make your reclaims, treat them as normal, and if you get no response or even a favourable decision in your favour, do the normal thing and complain to the FOS.

This is an ongoing matter, I will post as I hear, but try not worry about it right yet, because going from some information received, both the FSA and the FOS have confirmed - complaints are to be investigated as normal for now.

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Re: FSA to contest BBA's Judicial review of new PPI complain

In todays media news.......


http://www.myfinances.co.uk/insurance/n ... 378121.htm

FSA to challenge PPI judicial review:

The Financial Services Authority (FSA) is to contest the British Bankers' Association's (BBA) instigation of a judicial review of its new complaints handling procedure for payment protection insurance, or PPI.

On Friday (October 8th), the BBA said the rules - which are scheduled to come into force at the end of the year - have "insufficient legal clarity".

In a statement, the FSA said it "strongly believes" its proposed regulations will provide a fair solution for both consumers and the banking industry.

The watchdog added that firms will be expected to continue handling PPI complaints while its challenge of the judicial review is ongoing.

According to the FSA, there have been more than one million grievances raised about PPI products since it took on their regulation in 2005.

Commenting on the BBA's decision to launch a judicial review, Which? said the industry body is fighting a "ridiculous war" on bank customers.

The organisation's chief executive Peter Vicary-Smith commented: "Not content with the billions they have made from this overpriced, flawed and frequently mis-sold product, the banks now seem to be trying to wriggle out of implementing changes that would ensure consumers are treated fairly."

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Re: FSA to contest BBA's Judicial review of new PPI complain

The latest on this is it have been confirmed that Lloyds have blocked investigating PPI complaints..........other banks may follow suite, so if you do have a reclaim, do check with your bank and ask them for an update on your complaint.

However, I am not sure if they have actually been agreed a waiver from the FSA at this time, but do check more details as found on the MSE website news.....

http://www.moneysavingexpert.com/news/r ... mpaign=box

Lloyds puts PPI claims on hold in defiance of regulator:


Government-backed Lloyds Banking Group is defying regulatory guidelines by putting all payment protection insurance (PPI) complaints on hold.

The UK's largest bank, which includes Lloyds TSB, Bank of Scotland and Halifax, now faces a backlash from the Financial Services Authority (FSA) and its own trade body.

Lloyds's move follows last Friday's announcement by the British Bankers' Association (BBA) to seek a judicial review to stop the regulator, the FSA, forcing lenders to review millions of PPI sales.

The FSA's demands would lead to mass compensation for up to three million mis-selling victims, which could top £2 billion (see the PPI Reclaiming guide).

The regulator stated on Friday that banks must continue to handle complaints until the legal process ends. The banks' trade body, the BBA, adds that banks cannot choose which complaints go on hold.

Lloyds could yet be joined by fellow rebels. Barclays says it is reviewing its PPI complaints processes. HSBC says it will continue to deal with official protests but is "liaising with the FSA on how to handle complaints".

Santander says it will continue to hear PPI complaints, while Royal Bank of Scotland's press office was unable to confirm its policy in time for publication (please return on Tuesday morning for an update).

Banks and other lenders have been mis-selling PPI, designed to cover loan and credit card payments if you cannot work, on a massive scale for years. In the last five years, there have been more than a million complaints made to firms about PPI, while the FSA has taken action against 24 companies in that time and issued numerous warnings about mis-selling.

Defiance

A Lloyds spokeswoman says: "We will stand by any settlements that have already been made to customers. The court case will not affect those offers.

"However, while the court is considering the issues raised by the BBA, any PPI sales-related complaints will be on hold until further notice. This decision was taken in full consultation with the BBA."

That statement is in defiance of the FSA's stance.

The regulator said on Friday: "In the interests of consumers, firms will be expected to continue handling complaints while this process is ongoing."

It is understood the FSA could take action against banks that don't follow those guidelines.

Meanwhile, a BBA spokeswoman says: "The only people who can put complaints on hold are the FSA, the Ombudsman or the courts."

Bank charges claims were put on hold in July 2007 pending the result of the historic case into overdraft fees, which banks won.

But that action was permitted by the FSA, the Ombudsman and the courts.

What can consumers do?

The Financial Ombudsman Service, the independent arbitrator, is still hearing complaints. You must normally complain to your bank and wait until a firm rejection or if the issue has not been resolved within eight weeks, before involving the Ombudsman.

But in this case it says it will treat a hold as a trigger to allow it to investigate so you don't need to wait the eight weeks.

A whopping 81% of consumers who complain to the Ombudsman on PPI win their case. Yet only an average of 5% of rejected complainants, across all product sectors, take their case to the arbitrator.

MoneySavingExpert.com comment

Martin Lewis, MoneySavingExpert.com creator, says: "This is an outrage. The bank charges reclaiming hold was ordered by the courts and agreed with by the FSA – this is something quite different.

"This type of action is like a black-hatted cowboy riding into town, whooping and yelling, and pretending they're untouchable. It's time for the FSA to polish up its sheriff's badge, kick in its spurs and shoot them down.

"We know 81% of people who go to the Ombudsman with PPI complaints win. We know there has been systemic mis-selling.

"What we need to see now, after the charade of the bank charges technicality, is the institutions of state provide real justice for the millions who've been mis-sold billions worth of PPI."

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Re: FSA to contest BBA's Judicial review of new PPI complain

Further update.......

http://www.which.co.uk/news/2010/10/hig ... ld-233683/

High street banks put PPI complaints on hold
Complaints delayed while banks mount legal fight
14 October 2010


Nearly all of the UK’s high street banks have confirmed that they will be stopping their reviews of payment protection insurance (PPI) complaints while they wait for the results of a judicial review on claiming for PPI misselling to emerge.

Following an announcement on 12 October from Lloyds that the banking group would no longer be processing PPI complaints, Barclays, HSBC, Co-op and Royal Bank of Scotland have all confirmed to Which? that complaints affected by the review would be put on hold until the outcome of the review.

Only Santander has promised to continue to process complaints on PPI as usual.

What is the problem with PPI?
In October 2006, the Office of Fair Trading (OFT) estimated there were approximately 20 million PPI policies in force, with between 6.5 and 7.5 million further policies being sold each year.

In June 2008, a report from the Competition Commission concluded that consumers had been overcharged on PPI by £1.4bn a year. In the wake of this, Which? has been at the forefront of a tireless campaign to ensure that consumers are compensated for this misselling, much of which has come from high street banks.

In the past five years more than 1 million complaints have been made to firms over PPI. In 2009/2010 alone, customers referred nearly 50,000 complaints to the FOS.

Since then, the Financial Services Authority (FSA) has announced plans to implement stricter rules on how companies handle PPI complaints.

Why are the banks stalling on PPI complaints?
On 8 October, the British Banker’s Association (BBA), the trade body that represents the UK’s banks, launched a legal challenge against the financial regulator’s plans for a tougher stance on PPI complaints.

Since then, almost all of the UK banking sector has stated that they will not review complaints affected by the judicial review but any other complaints not affected will be processed as usual.

Which? wants the banks to adhere to FSA rules about complaints handling and carry on dealing with complaints until they are instructed not to as part of an agreement, which is still to be reached with the FSA.

What does the regulator say about the banks’ response on PPI?
The FSA sets strict guidelines for financial institutions to deal with complaints. Banks have eight weeks to give a final response on a complaint, and if it has not done so after this time, it must write to its customer explaining why and provide them the opportunity to take their complaint to the Financial Ombudsman Service (FOS).

This is what banks are now doing with cases affected by the judicial review.

What should you do if you have a PPI complaint that’s affected?
If you think that you have been missold PPI, then submit a complaint using our online tool.

If you don't hear anything by the end of the 8 weeks, if your complaint is rejected or if the bank refuses to deal with your complaint, it's worth taking your case to the FOS, whose decision is binding on your provider.

Do not wait for the judicial review to be completed before you put in a claim or refer your complaint to the FOS. Banks may seek to apply time-bars to prevent you making a complaint in the future.

Which? says
Which? chief executive Peter Vicary-Smith said: 'Banks should continue to deal with all PPI complaints.

'Using the judicial review as an excuse to put legitimate complaints on hold seems like a shameless attempt to duck out of giving consumers the redress they are entitled to.'

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Re: FSA to contest BBA's Judicial review of new PPI complain

i see that on 24th November 2010 The Financial Services Authority (FSA) published a statement on the status and implications of the open letter it sent to industry setting out common point of sale failings for PPI sales.

http://www.fsa.gov.uk/pubs/press/ppi_statement.pdf

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Re: FSA to contest BBA's Judicial review of new PPI complain

As shown on the MSE news site.....

http://www.moneysavingexpert.com/news/r ... mpaign=box

Major delays in Ombudsman PPI rulings:

Please refer to above link for this news.