Judicial Review/FSA

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http://www.fsa.gov.uk/pages/Library/...2010/153.shtml

Posted some time ago by the FSA, but a must read if your currently making a reclaim where your bank maybe one of those involved until the matter resolves.


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.

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Re: Judicial Review/FSA

http://www.bba.org.uk/media/article/...aints-handling

Payment Protection Insurance - complaints handling
13/10/10

"The BBA's members will continue to handle all PPI-related complaints in accordance with FSA rules. Where the assessment of the complaint would not be affected by the judicial review, these complaints will be handled in the normal way. If your complaint will be impacted by the judicial review, and cannot be resolved at this point, then your bank will write to inform you.
"Customers should be assured that all complaints will be reviewed - even those delayed by this judicial review process. There is no deadline for receipt of complaints. If customers have a problem regarding PPI they should contact their bank and, if necessary, complain in the normal way."
For further information, please contact:
BBA Press Office: 020 7216 8989
Out of hours: 020 7216 8888


Payment Protection Insurance (PPI) Factsheet

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Re: Judicial Review/FSA

What this is all about;

http://www.bba.org.uk/customer/article/ppi-factsheet

Payment Protection Insurance (PPI)
13/10/10

Why the BBA is bringing a judicial review
What is PPI?

PPI is an insurance product which covers the risk of a borrower being unable to repay their borrowing.
It typically covers accident, sickness, unemployment and life cover, but the detailed terms and conditions of different policies will vary. It is usually paid for either as a single up front premium (usually added to the amount of the underlying loan provided) or by separate monthly instalments.
Until recently, banks offered to arrange PPI for customers alongside their credit applications.
What is the case about?

This judicial review is not simply about PPI: it is about the ability of the Financial Services Authority (FSA) and Financial Ombudsman Service (FOS) to apply new standards to old sales.
The FSA recently published a policy statement and open letter to the industry advising they should consider complaints about PPI not just by reference to the detailed conduct of business rules which applied at the time but also to standards that are based on the FSA’s guiding principles for doing business. The BBA has applied to the Courts for a judicial review of (i) the FSA’s approach contained in its policy statement, and (ii) the Financial Ombudsman Service’s approach to PPI sales complaints contained in its guidance.
We believe the FSA is effectively creating a precedent which permits it to apply new rules to previous sales – even where those sales were regulated by other FSA rules.
Therefore this ruling might not only affect customers who have bought PPI, but might also set a precedent that could affect all products regulated by the FSA.
I have lodged a mis-selling complaint with my bank. What will happen to this complaint?

The BBA's members will continue to handle all PPI-related complaints in accordance with FSA rules. Where the the assessment of the complaint would not be affected by the judicial review, these complaints will be handled in the normal way. If your complaint will be impacted by the judicial review, and cannot be resolved at this point, then your bank will write to inform you.
Customers should be assured that all complaints will be reviewed - even those delayed by this judicial review process. There is no deadline for receipt of complaints. If customers have a problem regarding PPI they should contact their bank and, if necessary, complain in the normal way.
How long will this all take?

The BBA is working with the FSA and the FOS to ensure that these matters are resolved as swiftly and fairly as possible. The industry felt that there was no alternative but to go to judicial review, as discussions with the FSA and the FOS have not enabled the issues to be resolved.
The specific day that the judicial review will be heard is ultimately a matter for the Court to decide but we are hopeful that time can be made available within the next few months or the early part of 2011.
In response to requests from individual claimants and their agents, the BBA has issued a letter to further explain how payment protection insurance mis-selling complaints are being handled by banks. The full text of the letter is here.


Payment Protection Insurance (PPI) Factsheet

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Re: Judicial Review/FSA

PPI Complaints Handling:

http://www.bba.org.uk/media/article/...aints-handling

A letter on PPI complaints handling

In response to requests from individual claimants and their agents, the BBA has issued a letter to further explain how payment protection insurance mis-selling complaints are being handled by banks. The full text of the letter is:
You will be aware that the BBA has filed papers for a judicial review of the FSA policy statement on PPI complaints (PS10/12) and guidance published by the Financial Ombudsman Service on 8th October 2010. This is not a decision that we have taken lightly, but we believe that the FSA and FOS approach raise important points of law that need to be resolved. The application and grounds will be available at the High Court in due course.
We are calling for the policy statement and guidance to be quashed, which directly affects the manner in which firms can assess any complaint that would be affected by the approach taken by the FSA and FOS in the policy statement and guidance.
As a result, it is likely that many firms will take the following approach to complaints handling pending the conclusion of the judicial review (it is ultimately however for individual firms to decide their own approach to complaints handling);
During the judicial review process complaints will continue to be reviewed - even those delayed by this judicial review process.

• Where the assessment of the complaint is not affected by the judicial review, these complaints will be handled in the normal way.
• If a complaint is affected by the judicial review and cannot be resolved at this point, then the bank will write to inform their customer.

The extent of the review of the complaint that is carried out at this stage may vary depending upon whether the complaint is affected by the judicial review.
As an integral part of this process, banks will;

• keep a register of complaints that are affected by the judicial review,
• keep customers with such complaints advised of significant developments and
• conclude the handling of such complaints once the judicial review process has ended and the applicable standards have been clarified.

Contrary to some media commentary, there is no deadline for receipt of complaints and generally no need for customers to make their complaints as a matter of urgency.
The date for the hearing of the judicial review is a matter for the Court to decide but we are hopeful that time can be made available within the next few months or the early part of 2011.
For further information on why the BBA is bringing this judicial review, please read our factsheet (see link below).


Payment Protection Insurance (PPI) Factsheet