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There are 3 major events due to take place in the coming week:
Wed 26 Sept. FSA PPI Ivestigation
The Fundamentaly Supine Authority are due to announce the conclusions
to their investigation into Payment Protection Insurance.
The PPI market is huge and so are the figures. It is estimated that there are 20 million current policies in the UK, although it is widely believed that
figure for those policy holders who realise they have one is significantly
less.
The profit margins for the PPI industry are eye-wartering. From the income
received from PPI the payout for claims is just 20 percent compared to
motor insurance of 80 percent. Only 1 in 5 PPI claims are paid.
The FSA has conducted it's investigation into PPI with it's customary break-neck speed and has taken a mere two and a half years to conclude.
Thur 27 Sept. FSA Waiver Review
The FSA will announce it's 2 month review of it's complaints handling waiver. ''We will review the waiver in two months to ensure the criteria for granting the waiver are being met, including whether banks and building societies are complying with the conditions set out in the direction. If we are not satisfied that these criteria are being met after two months or at any time after that, we can revoke the waiver''.
Their flagship condition for the waiver are the ''safeguards'' which are
''designed to protect the consumer'' including the request for banks to
''identify cases of hardship'' and deal with their claims. Unfortunately
the FSA couldn't find the space in the waiver directions to explain what
is meant by hardship to either the banks or consumers. When challenged
on this be Which? the FSA ''suggested'' they use the criterea set out in
The Banking Code which, as everyone will know, is on page 24 section 14
paragraph 14.1. So that's alright then.
Fri Sept 28 OFT Test Case: Banks To File Defences
'' Each Bank (or if considered appropriate, all banks together) to serve
a defence and counterclaim by 28 September 2007''. This should make
for very interesting reading.
Wed 26 Sept. FSA PPI Ivestigation
The Fundamentaly Supine Authority are due to announce the conclusions
to their investigation into Payment Protection Insurance.
The PPI market is huge and so are the figures. It is estimated that there are 20 million current policies in the UK, although it is widely believed that
figure for those policy holders who realise they have one is significantly
less.
The profit margins for the PPI industry are eye-wartering. From the income
received from PPI the payout for claims is just 20 percent compared to
motor insurance of 80 percent. Only 1 in 5 PPI claims are paid.
The FSA has conducted it's investigation into PPI with it's customary break-neck speed and has taken a mere two and a half years to conclude.
Thur 27 Sept. FSA Waiver Review
The FSA will announce it's 2 month review of it's complaints handling waiver. ''We will review the waiver in two months to ensure the criteria for granting the waiver are being met, including whether banks and building societies are complying with the conditions set out in the direction. If we are not satisfied that these criteria are being met after two months or at any time after that, we can revoke the waiver''.
Their flagship condition for the waiver are the ''safeguards'' which are
''designed to protect the consumer'' including the request for banks to
''identify cases of hardship'' and deal with their claims. Unfortunately
the FSA couldn't find the space in the waiver directions to explain what
is meant by hardship to either the banks or consumers. When challenged
on this be Which? the FSA ''suggested'' they use the criterea set out in
The Banking Code which, as everyone will know, is on page 24 section 14
paragraph 14.1. So that's alright then.
Fri Sept 28 OFT Test Case: Banks To File Defences
'' Each Bank (or if considered appropriate, all banks together) to serve
a defence and counterclaim by 28 September 2007''. This should make
for very interesting reading.
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