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Payment Protection Insurance - complaints handling
13/10/10
"The BBA's members will continue to handle all PPI-related complaints in accordance with FSA rules. Where the the assessment of the complaint would not be affected by the judicial review, these complaints will be handled in the normal way. If your complaint will be impacted by the judicial review, and cannot be resolved at this point, then your bank will write to inform you.
"Customers should be assured that all complaints will be reviewed - even those delayed by this judicial review process. There is no deadline for receipt of complaints. If customers have a problem regarding PPI they should contact their bank and, if necessary, complain in the normal way."
Read more at: Lloyds puts PPI claims on hold in defiance of regulator - Legal Beagles Consumer Forum
NEW FACtSHEET PUBLISHED 9am TODAY
Payment Protection Insurance (PPI)
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 BBA's members will continue to handle all PPI-related complaints in accordance with FSA rules. Where the the assessment of the complaint would not be affected by the judicial review, these complaints will be handled in the normal way. If your complaint will be impacted by the judicial review, and cannot be resolved at this point, then your bank will write to inform you.
Customers should be assured that all complaints will be reviewed - even those delayed by this judicial review process. There is no deadline for receipt of complaints. If customers have a problem regarding PPI they should contact their bank and, if necessary, complain in the normal way.
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.
British Bankers’ Association
Wednesday 13th October 2010
13/10/10
"The BBA's members will continue to handle all PPI-related complaints in accordance with FSA rules. Where the the assessment of the complaint would not be affected by the judicial review, these complaints will be handled in the normal way. If your complaint will be impacted by the judicial review, and cannot be resolved at this point, then your bank will write to inform you.
"Customers should be assured that all complaints will be reviewed - even those delayed by this judicial review process. There is no deadline for receipt of complaints. If customers have a problem regarding PPI they should contact their bank and, if necessary, complain in the normal way."
Read more at: Lloyds puts PPI claims on hold in defiance of regulator - Legal Beagles Consumer Forum
NEW FACtSHEET PUBLISHED 9am TODAY
Payment Protection Insurance (PPI)
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 BBA's members will continue to handle all PPI-related complaints in accordance with FSA rules. Where the the assessment of the complaint would not be affected by the judicial review, these complaints will be handled in the normal way. If your complaint will be impacted by the judicial review, and cannot be resolved at this point, then your bank will write to inform you.
Customers should be assured that all complaints will be reviewed - even those delayed by this judicial review process. There is no deadline for receipt of complaints. If customers have a problem regarding PPI they should contact their bank and, if necessary, complain in the normal way.
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.
British Bankers’ Association
Wednesday 13th October 2010
