Banks have taken legal action today against the FSA

[NLP]

and so the big con part 2 commences.

all pull your trousers down, and bend over.... you know what happens next.

all ppi cases on hold!

[di30]

Re: Banks have taken legal action today against the FSA

They should take responsibility for their actions, lots have been out of pocket in the first place due to this.
I know some may try it on, but there are lots of genuine people out there who have been treated in a bad way by their own bank.

So it looks like they will get their own way again, just like the charges!!

[NLP]

Re: Banks have taken legal action today against the FSA

a stand needs to be taken this time

boycott the banks and open accounts with metro bank, they never sold ppi

that should finish them off

[di30]

Re: Banks have taken legal action today against the FSA

http://www.bba.org.uk/media/article/...atement-on-ppi

BBA brings judical review

The BBA said in a statement:

"The British Bankers' Association regrets that today it has had to file papers with the high court asking for some decisions made by the Financial Services Authority and the Financial Ombudsman Service to be judicially reviewed. This relates to the proposed new rules that are due to be implemented at the end of this year on handling payment protection insurance complaints.
"It has unfortunately been necessary to do this because there is insufficient legal clarity about what the FSA and FOS is proposing in this area. Everyone's actions must be assessed on the basis of a proper understanding of the relevant law and regulation and this procedure will bring this about
"We will continue to explore all opportunities for dialogue with the FSA to resolve the industry’s concerns. No one wants to go to court but the law needs to be clear. We hope to get this resolved as quickly as possible."

[di30]

Re: Banks have taken legal action today against the FSA

News from the BBC Sunday Media......


http://www.bbc.co.uk/news/business-11509460



10 October 2010 Last updated at 15:04
Banks take on FSA over 'illegal' PPI rules


Banks fear new City watchdog rules on payment protection insurance (PPI) complaints could become widespread, their representative body has said.
The British Bankers Association said it feared "illegal and retrospective" rules could be used to cover the sales of other products.
On Friday, it asked the High Court for a judicial review of the new rules.
The Financial Services Authority (FSA) said it would "vigorously contest" the review.
'Can of worms'
After several years of investigation by the Office of Fair Trading, Competition Commission and the FSA, the regulator announced in August a firm crackdown on the way banks have been dealing with complaints about mis-sold PPI policies.
It stipulated, among other things, that banks and other lenders will have to review old complaints about the mis-selling of PPI.
To this end, it announced new rules that are due to come into force on 1 December.
They could result in more than 2.5 million people being refunded as much as £2.7bn in total.
But the BBA told the BBC the new rules could "open up a whole can of worms".
It said new rules that could be applied retrospectively were "illegal", hence the decision to file for a judicial review. Its main concern was that the rules could set a precedent, and then be applied to the sale of other products.
"If your house became a controlled parking zone overnight, you wouldn't expect to be fined for parking there yesterday," a spokesperson said.
The FSA has said it would contest the BBA's call for a judicial review.
"In the last five years, there have been more than a million complaints made to firms about PPI," the watchdog said.
"The FSA strongly believes that the package of new complaint-handling measures is a sensible and fair solution for consumers and industry alike."
Consumer groups said PPI policy holders considering a complaint should act fast.
"The good news about this challenge is that the FSA has decided to allow consumers to continue complaining," said Wendy Alcock at consumer website Moneysavingexpert.com.
"Consumers must take this chance to complain now while they still have the chance. If the banks were to unjustly win this review, the chances of getting compensation will be limited."
Increased complaints
The new rules were announced following a long campaign by consumer groups, such as Citizens Advice and Which?, that accused firms selling PPI of engaging in a widespread "protection racket".
It accused lenders and others of selling the insurance alongside loans when it was unnecessary, of not telling the borrower they were even paying for a policy, or of selling policies on which the borrower could not in fact claim.
There has been a dramatic increase in the number of PPI complaints in the past two to three years, alongside highly critical investigations by the Office of Fair Trading (OFT) and the Competition Commission.
But the FSA has said firms were turning down almost half of the PPI complaints they received, and that some had rejected nearly all their complaints.
About 30% of those people had turned to the Financial Ombudsman Service (FOS) for help, where about 80% of the complaints were then upheld.

[pompeyfaith]

Re: Banks have taken legal action today against the FSA

Illegal lol that's a bit rich what is legal about ripping people of

[marshallka]

Re: Banks have taken legal action today against the FSA

This bit kills me from the above

They could result in more than 2.5 million people being refunded as much as £2.7bn in total.



No mention of

City Bankers Pocket Bonus Total Of £6.8bn


Am I missing something here!!!!

They are worried about losing 2.7bn in total when they receive the 6.8bn in bonus money!!

------------------------------- merged -------------------------------
City Bonuses For Bankers To Total £6.8bn In 2010 Amid High Unemployment And Fragile Economy | Business | Sky News

[di30]

Re: Banks have taken legal action today against the FSA

Yeah I know and it was only April they announced the bonus money.........only 6 months ago!

[di30]

Re: Banks have taken legal action today against the FSA

Today's media news.....

http://www.moneymarketing.co.uk/regu...020000.article

PPI rules open door to retrospective regulation, says BBA:

The British Bankers’ Association has warned the FSA’s complaints handling measures for payment protection insurance effectively opens the door for retrospective regulation.
The BBA filed papers to the High Court on Friday launching a judicial review against the FSA and the Financial Ombudsman Service in an attempt to bring clarity to the FSA’s PPI complaints handling measures

The FSA published a policy statement in August outlining a package of measures to protect consumers buying PPI which included guidance on paying redress and when firms should review past complaints.

In a customer factsheet explaining why the BBA has brought the review, the trade body says the FSA has advised the industry to consider complaints based on both the conduct of business rules that applied at the time and the regulator’s guiding principles for doing business.
In the document the BBA says: “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.”
The BBA argues that this could have implications for other regulated products.
The BBA says: “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.”
The FSA plans to contest the judicial review.
It is expected that firms will continue to handle PPI complaints while the review process continues.

[EXC]

Re: Banks have taken legal action today against the FSA

More from the BBA.

BBA - The voice of banking and financial services - Media - Article - PPI Factsheet


Payment Protection Insurance (PPI)
11/10/10

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 banks are currently discussing with the FSA how best to handle complaints whilst the judicial review is ongoing.

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.

[di30]

Re: Banks have taken legal action today against the FSA

http://www.which.co.uk/news/2010/10/...urance-233300/

Banks drag their feet on protection insurance:

Bankers slammed over PPI attitude
11 October 2010

The Financial Services Authority (FSA) will contest the British Bankers’ Association’s (BBA) judicial review of the payment protection insurance (PPI) complaints handling measures.
Which? chief executive Peter Vicary-Smith has criticised BBA for its support of a product that has been consistently mis-sold over the years. The Financial Ombudsman Services (FOS) has recorded thousands of complaints relating to PPI. It is a major campaigning area for Which?.
The PPI problem

Banks will be expected to continue handling complaints while the complaints process is in progress. If customers don’t think their complaint has been handled properly, they can refer it to the FOS.
There have been more than a million PPI complaints over the last five years. In 2009/2010, the FOS received 49,196 complaints. Nine in ten were found to be in favour of those making the complaint.
The FSA believes that the package of new complaint handling measures outlined in its policy statement is a 'sensible and fair solution for consumers and the industry alike'.
Which? acts on PPI

Peter Vicary-Smith said: ‘It makes you wonder what planet the banks are living on. 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. The BBA's taxpayer-backed members should take a long, hard look at themselves and ask why they continue to wage this ridiculous war on consumers.
For more on PPI, see the Which? campaign guide.

[Angry Cat]

Re: Banks have taken legal action today against the FSA

[Quote]:
"...The BBA's taxpayer-backed members should take a long, hard look at themselves and ask why they continue to wage this ridiculous war on consumers."

[di30]

Re: Banks have taken legal action today against the FSA

[quote=Angry Cat;176123]

:
"...The BBA's taxpayer-backed members should take a long, hard look at themselves and ask why they continue to wage this ridiculous war on consumers."

I must agree with you Angry Cat!

[pompeyfaith]

Re: Banks have taken legal action today against the FSA

Di,

That is my favourite report thus far. that Mr Vicary-Smith has hit the nail on the head and it is about time the government too started standing up for consumers rights and made it very clear that the banks stance will not be entertained.

[benhunt]

Re: Banks have taken legal action today against the FSA

They should take responsibility for their actions, lots have been out of pocket in the first place due to this.
I know some may try it on, but there are lots of genuine people out there who have been treated in a bad way by their own bank.

So it looks like they will get their own way again, just like the charges!!

Not all PPI was mis-sold. My Mrs just left Nat West after 20 years, the last 10 as one of the top customer advisers in the country. She never once sold PPI to anyone who didn't need it.