Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

[Chip Tuesday]

Re: Latest updates on PPI Judicial Review and claims on hold

I've looked on the Challenge Your Charges website (the CMC involved) and they make no mention of the letter or the MSE article.

CT

[Amethyst]

Re: Latest updates on PPI Judicial Review and claims on hold

Tell a lie, they have quoted a couple bits

HSBC states: "We do not intend to make representations in respect of this complaint at the present time. "The standards against which this complaint should be assessed are currently subject to legal proceedings.
"We would strongly urge you not to consider and determine this complaint at this time."

[EXC]

Re: Latest updates on PPI Judicial Review and claims on hold

The FOS says: “We may not know the final outcome of this legal action much before the end of the 2011/2012 financial year. This means we could face some extreme, but far from implausible, operational and financial scenarios which might result in our incurring substantially increased costs with far lower income.''

“For example, if financial businesses were to decide to suspend cooperation on PPI cases as a result of the legal action, our loss of income from case fees in just one month could lead to an operating monthly deficit of up to £4m. This would exhaust our reserves within six weeks.”


FOS warns PPI review may exhaust reserves | News | Money Marketing

[mids]

Re: Latest updates on PPI Judicial Review and claims on hold

Oh dear. So this whole JR business could threaten the very existence of FOS? Why on earth havent they accounted for bank non-compliance? The banks were always going to defy the regulator and FOS with so much at stake. Very disappoin ting news.

[EXC]

Re: Latest updates on PPI Judicial Review and claims on hold

Why on earth havent they accounted for bank non-compliance? .

They are accounting for non-compliance. This is precisely what their proposals in the consultation are addressing financial ombudsman consults on its plans and budget for the year ahead

[Chip Tuesday]

Re: Latest updates on PPI Judicial Review and claims on hold

Oh dear. So this whole JR business could threaten the very existence of FOS? Why on earth havent they accounted for bank non-compliance? The banks were always going to defy the regulator and FOS with so much at stake. Very disappoin ting news.

Mids you are right, but only if this is the worst case scenario. FOS has a 6 week reserve of cash before its supplies are exhausted, but this is based on the assertion that ALL the banks and financial institutions don't co-operate (which we know Santander are, for instance) and therefore don't pay their £500 to the FOS. So although this is bad news it is not the end of the world. It is encouraging that the FOS has found this out for themselves and that they have planned to increase their contingency (from 5% to 25%), so they are already in the process of remedying this problem.

This does, however, demonstrate the far reaching ramifications of the judicial review. Lets just hope that the banks haven't taken this news as a guide of how to bankrupt the FOS.

CT

[EXC]

Re: Latest updates on PPI Judicial Review and claims on hold

I don't think there's even a remote chance of the FOS being unable to operate due to lack of funds.

The case fees for each complaint are only one of two elements of the FOS's income. The other is a levy paid by all financial services companies which is collected by the FSA (and OFT). The FSA also ultimately approves the overall budget, case fees and levy for the FOS each year. The FSA has direct responsibility over the FOS and is obliged to ensure it is sufficiently funded to carry out the functions required of it.

[enaid]

Re: Latest updates on PPI Judicial Review and claims on hold

I don't think there's even a remote chance of the FOS being unable to operate due to lack of funds.

The case fees for each complaint are only one of two elements of the FOS's income. The other is a levy paid by all financial services companies which is collected by the FSA (and OFT). The FSA also ultimately approves the overall budget, case fees and levy for the FOS each year. The FSA has direct responsibility over the FOS and is obliged to ensure it is sufficiently funded to carry out the functions required of it.

I don't doubt you for a minute what you are saying, but as always we will see.

[Amethyst]

Re: Latest updates on PPI Judicial Review and claims on hold

I thought FOS only got a case fee if a case progressed to an adjudicator ?

Or I suppose, if banks refuse to cooperate, more will go to an adjudicator and thus more case fees will be owed (and I assume remain unpaid until the case is resolved?)

[EXC]

Re: Latest updates on PPI Judicial Review and claims on hold

I thought FOS only got a case fee if a case progressed to an adjudicator ?

Or I suppose, if banks refuse to cooperate, more will go to an adjudicator and thus more case fees will be owed (and I assume remain unpaid until the case is resolved?)

That's right.

''A case fee becomes “chargeable” when our customer contact division passes a complaint on for further work to one of our casework teams of adjudicators. The fee does not actually become payable until the case is settled and closed. Our finance team sends out an invoice for the case fee to the business concerned at the end of the month in which the case is closed.''

http://www.financial-ombudsman.org.u..._notes/QG1.pdf

[pompeyfaith]

Re: Latest updates on PPI Judicial Review and claims on hold

perhaps this is the reason the fos insist i return the offer acceptance form dispite the fos playing no part in the later stages of my complaint and merely agreeing with everything the bank said

[di30]

Re: Latest updates on PPI Judicial Review and claims on hold

That's a thought PF, good point.

[pompeyfaith]

Re: Latest updates on PPI Judicial Review and claims on hold

hmmm shall i send it off or not lol guess i will have to not that i want to

[di30]

Re: Latest updates on PPI Judicial Review and claims on hold

hmmm shall i send it off or not lol guess i will have to not that i want to

I don't really know what to suggest for the best PF, what timescale have the FOS given you on this?

[EXC]

Re: Latest updates on PPI Judicial Review and claims on hold

The FSA have fined RBS £2.8b for poor complaints handling and made a point of saying that it didn't specifically relate to PPI complaints or, interestingly, ''correspondence to the Ombudsman''.

Let's hope that's the subject of a further fine down the road.

FSA fines RBS and NatWest £2.8m for poor complaint handling