FSA-Firms planning for refunds after test case - Aug 09

[Amethyst]

Following the renewal of the waiver in July 2009 and the pending conclusion of the first stages of the test case the FSA are checking that firms have, or have started to implement, processes to ensure swift and effective complaints and refunds (if applicable) handling once the waiver is no longer in place.

If you recall back in November 2008 we received confirmation from RBS that plans were in place to proactively refund customers should the test case and following proceedings require them to.

The FSA, in August this year, have written to all firms asking what they are doing to comply with condition 13 of the waiver.

(13) the firm must ensure that relevant charges complaints that are not progressed as a result of this direction (or the previous directions) are dealt with effectively and swiftly once the outcome of the test case is known (or this direction otherwise ceases to have effect) and must liaise closely with the FSA in order to achieve this. This includes making preparations for dealing with relevant charges complaints when this direction ends and updating those preparations as the outcome of the test case becomes clearer;

Outcome 5 is probably the most relevant.



here are the questions; responses are currently being looked at.

[Amethyst]

Re: FSA-Firms planning for refunds after test case - Aug 09

Dear Ms Coleman
Thank you for your query below:
The relevant provision of the waiver is condition 13(14). This states that firms must not take into account the period between 27 July 2007 and the date of termination of the waiver for the purposes of relying on any limitation periods or time limits within which complainants must:
(a) make relevant charges complaints;
(b) refer relevant charges complaints to the Ombudsman; or
(c) bring claims before the court.
So, the position is that a complainant may claim charges going back as far as the limitation period plus the period of the waiver and this applies to complaints made directly to firms as well as claims to the courts and the FOS.
Further, to clarify a point in your email, there is no need for the consumer to raise the issue of limitation. The waiver requirement means that firms may not raise limitation as a defence (in court, to the FOS or directly to the consumer).
Thank you
S. Malko
Information Access Team
Financial Services Authority