WAIVER EXTENDED - January 2009 - up to a further 6 months

[Amethyst]

FSA extends waiver to firms on complaints handling




FSA/PN/014/2009
22 January 2009
The Financial Services Authority (FSA) today extended its waiver from complaints handling rules regarding unauthorised overdraft charges, for up to six months. This is because the test case is ongoing, and it is not yet clear how the banks should be responding to complaints about unauthorised overdraft charges so that customers are treated consistently and fairly.
The waiver was due to expire on January 26. The extension has been offered to those firms who signed up to the July 2008 waiver. This represents approximately 98% of the market.
Whilst the waiver is in place, signatories will not be required to handle complaints relating to unauthorised overdraft charges within the time limits set out in the Dispute Resolution manual.
Dan Waters, director of Retail Policy and Conduct Risk at the FSA, said:
"Our objectives continue to be certainty over this complex issue, and a fair and consistent resolution of consumer complaints about unauthorised overdraft charges.
"The FSA has reviewed the prevailing circumstances and has decided to offer firms an extension to the waiver, to run for up to six months."
The FSA can revoke the waiver at any time if it considers a waiver is no longer appropriate, for example, if it no longer provides adequate consumer protection, or material progress is not being made in the test case, or a firm fails to comply with the conditions set out in the waiver.
The FSA first granted a waiver for 12 months from its complaints handling rules regarding unauthorised overdraft charges in July 2007. This was followed by a new waiver with a duration of six months in July 2008.
The waiver means that while it is in operation, any bank or building society granted the waiver will not be required to handle this type of complaint within the time limits set out in the FSA rules. The county courts have 'stayed' cases referred to them and the Financial Ombudsman Service has adopted a similar approach.
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Notes to editors

1. The waivers are available on the FSA website.
2. The waiver has been extended for up to six months. This is because the test case is ongoing and it is not yet clear how the banks should be responding to complaints about unauthorised overdraft charges so that customers are treated consistently and fairly.
3. The test case began in July 2007. There are two stages. The first explores the preliminary issues of banks’ terms and conditions and whether they are subject to Unfair Terms in Consumer Contract Regulations 1999 and whether they are capable of being penalties at common law. Stage two will deal with whether the terms are actually unfair and are actually penalties at common law.
4. On current terms and conditions, the High Court decided that the current terms and conditions could be assessed for fairness under the Regulations; were not capable of being penalties at common law; and were in, or largely in, plain intelligible language.
5. The banks appealed the High Court’s decision that current terms and conditions can be assessed for fairness. The appeal was heard by the Court of Appeal from 28 October to 5 November 2008. The Court of Appeal’s judgment has yet to be handed down.
6. For more detail follow the link for Moneymadeclear.
7. The FSA regulates the financial services industry and has four 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; and fighting financial crime.
8. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

NO SUPRISES

[Amethyst]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

We have decided to offer the firms a modification of certain rules set out in the Dispute Resolution manual (DISP) in the format contained in the 2009 waiver direction. This follows on from the 2008 waiver, which ends on the 26 January 2009.
2007 waiver direction [PDF]
2008/2009 waiver direction - monthly reporting* [PDF]
2008/2009 waiver direction - quarterly reporting* [PDF]


seem to have replaced the july to jan waiver with the pre july one so wait a while till they sort themselves out at the FSA lol

[Fendyweather]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

Eh !!! upshot of that is what ????

[Amethyst]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

9.
(1) The direction xxxxx came into effect on 27 July 2008 and remain in effect (as
restated), subject to the variation contained in the direction.
(2) This variation of direction takes effect on 26 January 2009.
(3) This variation direction ends on the earlier of:
(a)
26 July 2009; or
(b)
resolution of the test case. For this purpose, resolution occurs when judgment has been entered in relation to all issues in dispute in the test case (including, for the avoidance of doubt, any issues which the Court agrees should in future be introduced into the case by way of amendment or otherwise) and the resulting orders either cannot be the subject of appeal or have not been the subject of appeal in circumstances where the time for doing so has expired, or when proceedings are otherwise discontinued.
However, provisions of this direction that are expressed to continue beyond its termination continue in force in accordance with their terms.

[Amethyst]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

Nothing changes honey xx

[Sapphire]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

Oh how I wish they would put these things in PIL, that to me is like trying to decifer Chairman Mao's diaries that were written in Mandarin.

[enaid]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

Another stalling tactic favouring the banks IMO. How many more people will go under waiting another 6 month?

[Amethyst]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

lol, it just means its stayed same.

Bless you millie cat xx

[Amethyst]

Has just stayed same....


Nice to reread it again As a few comments have been made lately about limitations thought i'd post up this bit of waiver


I think its fair its been extended.

DISP 1.6.2R, DISP 1.6.5R, DISP 1.6.6R, DISP 1.9.1R
(1) Time is to be treated as not running in relation to relevant charges complaints for the duration of this direction. However, if the firm nonetheless attempts to resolve a relevant charges complaint after the date of this direction, time starts to run in relation to that complaint from the date the complaint was received and the rules shall apply to the complaint in the usual way.
(2) The firm must comply with the conditions in this direction (including after this direction otherwise terminates) until all relevant charges complaints that it has received, but not resolved are resolved and for one year after that. In addition, the firm must continue to comply with condition 13(14) indefinitely.

(14)
the firm must not take into account the period between 27 July 2007 and the date of termination of this direction (the “stay period”) for the purposes of relying on any limitation period (or 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;
and the firm must not otherwise limit any redress that may be due to the customer, when complying with DISP or otherwise, because of the stay period;
(15)
to the extent that sums are ultimately to be paid to complainants in respect of relevant charges complaints that have been stayed, the firm must include in these sums an
The Financial Services Authority
25 The North Colonnade Canary Wharf London E14 5HS, United Kingdom
Telephone +44 (0)20 7066 1000 Fax +44 (0)20 7066 1099
Registered as a Limited Company in England and Wales No 1920623. Registered office as above
- 6 -
element of compensation in respect of interest charged to or lost by the customer as a result of being out of money during the stay period;

[Fendyweather]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

I am soooooooooo glad that there are such wonderfully intelligent and highly knowledgeable people on this site such as the lovely Amethyst. Where oh where would we be without your knowledge of all this to translate into simple people speak. Thank you so much. Stays the same. Now that, I get................. rest of it, I just dont. Sorry. xxx Thanks Amethyst for the deciphering. It looks like Egyptian hieroglyphics to me otherwise. THANK YOU SO MUCH FOR SIMPLE SPEAK. xxxxx

[Amethyst]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

Keep an eye out for the appeal judgment ... fingers crossed its not too far off.

Court Hearings - Court of Appeal Civil Division

[Amethyst]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

Times

From Times Online

January 22, 2009
Bank charges claims delayed again

The waiver that allows banks to freeze compensation claims has been extended for another six months


David Budworth

div#related-article-links p a, div#related-article-links p a:visited { color:#06c; } Thousands of savers who are pursuing their banks over unfair overdraft charges have been told they will have wait at least six months more to learn if they will receive compensation.
The Financial Services Authority (FSA) announced today that it is extending the waiver that allows banks not to pay out on claims.
The waiver was introduced in July 2007 when the Office of Fair Trading (OFT) started a court action to prove that high charges for unauthorised borrowing are unfair. It was due to expire next Monday, but the court case is far from complete and the FSA has said that it will allow banks to put claims on hold for a further six months.
Dan Waters, director of Retail Policy and Conduct Risk at the FSA, said: “Our objectives continue to be certainty over this complex issue, and a fair and consistent resolution of consumer complaints about unauthorised overdraft charges. The FSA has reviewed the prevailing circumstances and has decided to offer firms an extension to the waiver, to run for up to six months.”
Related Links

• Lenders begin overdraft charges appeal

• How to reclaim bank charges

While the waiver is in place the Financial Ombudsman Service has agreed not to proceed with complaints. Cases in the county courts have also been put on hold. The FSA can revoke the waiver at any time if the situation changes.
The waiver covers almost all banks - 98 per cent. You can view the banks and building societies that qualify here .
The waiver relates to a legal challenge by the OFT against eight institutions responsible for the majority of the UK’s current accounts, including Barclays, HSBC, Lloyds TSB and the Royal Bank of Scotland.
The OFT is seeking a court ruling that unauthorised overdraft charges are unlawful under consumer regulations introduced in 1999. It estimates that the banks earn £2.6 billion a year from the charges.
In April, the OFT won the first stage after the High Court rejected the banks’ claim that the regulations did not apply. This prompted the banks to ask the Court of Appeal to overturn that decision. The Court of Appeal’s judgment has yet to be handed down.
Although the extension of the waiver leaves existing claimants in limbo, some consumer groups have welcomed it because it means that claims can be made going back for a longer period.
The rules state that you are able to make a claim for charges incurred over the past six years. As long as the waiver is in place, consumers can claim charges dating back to July 2001.

[Shazzaw]

BBC report

From the BBC who state that they the decision on the Appeal may not be forthcoming until April!!!


Banks get more time on complaints


Mr Justice Andrew Smith first ruled that the OFT could scrutinise bank charges


Banks have been given another six months' grace to defer any decision on customers' complaints about excessive overdraft charges.
The Financial Services Authority (FSA) has extended the "waiver" from its own rules which normally require banks to deal with complaints within a set time.
The banks can continue sitting on new complaints until the end of July 2009.
The FSA said it had extended the waiver because the High Court test case on the bank charges was still going on.
Dan Waters, the FSA's director of retail policy, said this meant it was not yet clear how banks should deal with the complaints "consistently and fairly".
"Our objectives continue to be certainty over this complex issue, and a fair and consistent resolution of consumer complaints about unauthorised overdraft charges," he explained.
'Desperately unfair'
This is the second time that the original waiver, first granted in the summer of 2007, has been extended.
Banks have not been prevented from continuing with their enforcement actions on charges-related debts


Marc Gander, CAG


Marc Gander of the Consumer Action Group (CAG) said he was disappointed but not surprised by the FSA's decision.
"It's now one and half years that people have been paying charges but are not able to do anything abut it," he said.
"What is desperately unfair is that the banks have not been prevented from continuing with their enforcement actions on charges-related debts, in particular putting default entries on their customers' credit files."
Judgements
All new claims against banks were effectively suspended in July 2007 when the Office of Fair Trading (OFT) and seven banks, along with the Nationwide building society, agreed to stage a test case to see if their controversial overdraft charges were legal or not.
Both sides are waiting for the Appeal Court to rule on an earlier judgement, by Justice Mr Andrew Smith, that the charges can at least be scrutinised by the OFT, under the consumer contract regulations.
That judgement is expected some time between now and the end of April.
But another vital stage of the legal process, in which the High Court will be asked to decide directly on the fairness or otherwise of the overdraft charges, has yet to begin.
Martin Lewis of moneysavingexpert.com said despite the apparent freeze on new complaints, some claimants had been successful in recent months. "Six months ago, at the last review, the FSA clarified that banks had to deal with claims from people in severe financial hardship," he said. "And with arms twisted behind their backs and the banks paying out, we continue to hear news of successes; in the last month one reclaimer has got paid out over £10,000."

[EXC]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

I think this is good news. The fact that the waiver has been ''extended for up to six months'' would clearly imply that it will no longer exist beyond July this year.

[Shazzaw]

Re: WAIVER EXTENDED - January 2009 - up to a further 6 months

could u poss elaborate EXC?? didn't they use the same terminology when the waiver was extended previously??

Would appreciate your thoughts on waht you read into this?

Thx in advance

shazzaw