PPI claims NOT on hold - regardless of what the banks may tell you.

[Amethyst]

We have had numerous reports of people with PPI claims against banks and insurers being told by customer services staff that all PPI claims are on hold due to the Judicial Review being bought against the FSA and FOS by the Banks and BBA because of new rules on complaints handling of case due to come into force in December.

The FSA have already stated in their press notice that complaints should continue as normal and I have spoken to both the FSA and the Financial Ombudsman this morning who have both confirmed there is no hold, no waiver is in force or applied for, and complaints should continue to be dealt with within 8 weeks as normal.

Obviously if anything changes I'll update, but I can't see that it would as the new rules arent even in force and there is no argument on the current rules.

If your bank or insurer does tell you PPI complaints are on hold, please let us know in this thread asap and we can get back to the FSA.

[di30]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

Can I post here?

Just came across a post on MSE, that the OP received an email from Lloyds to confirm they are not investigating........see here on post number......13981


http://forums.moneysavingexpert.com/...60775&page=700
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And post 42 here.....HSBC


http://forums.moneysavingexpert.com/...2780882&page=3

[Amethyst]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

It wasn't an email unfortunately but she should still let the FSA know.

I phoned them today and was told i will receive £6000 + they were just waiting on one more calculation but my husbands claim, despite being sent the same day and having the same reply, is being frozen until a decision is made by the FSA.

[righty]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

The action is to determine whether or not THE FSA can make such rulings. It has absolutely nothing to do with whether or not PPI has been mis-sold, which it has. The lending industry cannot now get the genie back in the bottle as their mis-selling has now been exposed for all to see. Their only hope is that they can make the consumer fight alone for compensation & as a result they may find their action shoots them in the foot

Once again we have the media getting it wrong or rather spinning for the financial industry

[di30]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

It wasn't an email unfortunately but she should still let the FSA know.

Sorry yes telephone not email.

[di30]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

News update from MSE, it have been confirmed that lloyds have put a hold on investigating PPI complaints, this does not go for all banks....

http://www.moneysavingexpert.com/new...m_campaign=box

Lloyds puts PPI claims on hold in defiance of regulator:


Government-backed Lloyds Banking Group is defying regulatory guidelines by putting all payment protection insurance (PPI) complaints on hold.
The UK's largest bank, which includes Lloyds TSB, Bank of Scotland and Halifax, now faces a backlash from the Financial Services Authority (FSA) and its own trade body.
Lloyds's move follows last Friday's announcement by the British Bankers' Association (BBA) to seek a judicial review to stop the regulator, the FSA, forcing lenders to review millions of PPI sales.
The FSA's demands would lead to mass compensation for up to three million mis-selling victims, which could top £2 billion (see the PPI Reclaiming guide).
It stated on Friday that banks must continue to handle complaints until the legal process ends. The banks' trade body, the BBA, adds that banks cannot choose which complaints go on hold.
Lloyds could yet be joined by fellow rebels. Barclays says it is reviewing its PPI complaints handling processes. HSBC says it will continue to handle complaints but is "liaising with the FSA on how to handle complaints".
Santander says it will continue to hear PPI complaints, while Royal Bank of Scotland's press office was unable to confirm its policy in time for publication (please return on Tuesday morning for an update).
Banks and other lenders have been mis-selling PPI, designed to cover loan and credit card payments if you cannot work, on a massive scale for years. In the last five years, there have been more than a million complaints made to firms about PPI.
Defiance
A Lloyds spokeswoman says: "We will stand by any settlements that have already been made to customers. The court case will not affect those offers.
"However, while the court is considering the issues raised by the BBA, any PPI sales-related complaints will be on hold until further notice. This decision was taken in full consultation with the BBA."
That statement is in defiance of the FSA's stance.
The regulator said on Friday: "In the interests of consumers, firms will be expected to continue handling complaints while this process is ongoing."
It is understood the FSA could take action against banks that don't follow those guidelines.
Meanwhile, a BBA spokeswoman says: "The only people who can put complaints on hold are the FSA, the Ombudsman or the courts."
Bank charges claims were put on hold in July 2007 pending the result of the historic case into overdraft fees, which banks won.
But that action was permitted by the FSA, the Ombudsman and the courts.
What can consumers do?
The Financial Ombudsman Service, the independent arbitrator, is still hearing complaints. You must normally complain to your bank and wait until a firm rejection or if the issue has not been resolved within eight weeks, before involving the Ombudsman.
It says in this case it will treat a hold as a trigger to allow it to investigate.
A whopping 81% of consumers who complain to the Ombudsman on PPI win their case. Yet only an average of 5% of rejected complainants, across all product sectors, take their case to the arbitrator.
MoneySavingExpert.com comment
Martin Lewis, MoneySavingExpert.com creator, says: "This is an outrage. The bank charges reclaiming hold was ordered by the courts and agreed with by the FSA – this is something quite different.

"This type of action is like a black-hatted cowboy riding into town, whooping and yelling, and pretending they're untouchable. It's time for the FSA to polish up its sheriff's badge, kick in its spurs and shoot them down.
"We know 81% of people who go to the Ombudsman with PPI complaints win. We know there has been systemic mis-selling.
"What we need to see now, after the charade of the bank charges technicality, is the institutions of state provide real justice for the millions who've been mis-sold billions worth of PPI.
"This must be sorted urgently. The FSA needs to check its rule book to see what else can be done. In extremes, it should arrange that customers bypass their own banks and simply complain direct to the Ombudsman.
"It would be quite staggering if it were held to ransom."

[wigeon]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

The actions of the LLoyds Bank group was predicted on a post I tried to place on the Consumer Action Group site in early September but because I am linked to a CMC it was refused. But I was right

[Amethyst]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

Unless the FSA and FOS agree then Loyds can put what they like on hold.

[di30]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

So they obviously were given authorisation by the FSA to do this then I take it?

As PF stated in a post, I do think the bankers offices will be rather busy tomorrow, along with the FSA.

[leclerc]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

.......and with 30% of the PCA market(and you would expect a pretty good share of the PPI market) others WILL follow suit yet the FOS and FSA would appear to be able to do absolutely nothing, right?

[Amethyst]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

Hmmmm ok I'll call the FSA again in the morning. Apparently Lloyds are going full throttle to stop claims being processed and have put a stop on any letters being issued until the situaton is clarified.

Until/Unless they have a waiver in place against the DISP rules, or if the Judicial Review is against the DISP regulations as they stand, then I dont see how they can put anything on hold.

[di30]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

I am going to email Customer Service via Lloyds TSB this evening, hope they will actually confirm what is what in email/writing.

[leclerc]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

I am going to email Customer Service via Lloyds TSB this evening, hope they will actually confirm what is what in email/writing.

They are like pulling teeth btw cos I have dealt with them before. Santander are much nicer, Barclays can be ok and I'm now rambling so I'll stop.

[pompeyfaith]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

or if the Judicial Review is against the DISP regulations as they stand, then I dont see how they can put anything on hold.

Amethyst,

If the JR upholds the BBA case how can claims be on hold because surely if that was the case it would just mean the present rules apply and the ones due to be implemented on the 1st December will not apply meaning that the banks do not have to reinvestigate previously rejected claims ?

PF

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This comes to mind:

Dire Straits – Brothers In Arms

[nelliewops]

Re: PPI claims NOT on hold - regardless of what the banks may tell you.

Hi folks,

Just a couple of queries..............

If the banks apply for a waiver (which I'm sure they will, although LTSB for one seem to think themselves above the law ), how long would it take for this to come into force..............and does each bank/financial institution have to apply individually for one?

Also over on MSE, another Norton claimant (like myself) said they had been today told by the FOS that the judicial review may not effect her complaint (in the short term at least) because Norton are a broker, not a bank............just wondered how much truth there is in that do you think?

Many thanks,

Nellie x