Banks challenge new PPI rules

[Amethyst]

Re: Banks challenge new PPI rules

I think a lot of the 'block' stories are regarding the 'pro-active' repayments that were due to begin in December, which is what the Banks are fighting against.

Banks of course will misinterpret things conventiently to say all complaints are on hold, when in fact they arent.

[Judge mental]

Re: Banks challenge new PPI rules

I fail to see how the banks can avoid their obligations for dealing will complaints without a waiver from the FSA, and given that the FSA have already stated they expect banks to continue to deal with complaints it does not look like there will be one coming . . . maybe we will get to see how big the FSA's balls really are . . . . I hope they are better endowed than the OFT.
This one has the potential to be a 'real gloves' off battle, the banks driven by financial greed and I can imagine that those behind the doors of the FSA are feeling slighted at being challanged.

Stuart

[di30]

Re: Banks challenge new PPI rules

So with complaints that are ongoing and already registered with the banks, I assume they would still have to continue to investigate?

There's a backlog now, it will be lots worse the way its going!

[pompeyfaith]

Re: Banks challenge new PPI rules

Anyone know what court this is likely to be heard in, can siteteam put the court hearing listing here when it becomes available.

Would love to go to this,think ill write to the FSA.

PF

[di30]

Re: Banks challenge new PPI rules

Not saying it would help, it probably sounds silly, but there are thousands and thousands of genuine people out there who have been out of pocket, can we all get something together and write to the FSA to back them on this?

I know its sounds silly :o

[Amethyst]

Re: Banks challenge new PPI rules

We'll post up any confirmed info as soon as its confirmed (as always ) so don't worry about being the last to know.

This SHOULDN'T affect current claims, just the new rules from Dec which you can find http://www.fsa.gov.uk/pubs/policy/ps10_12.pdf and Reform of PPI market to protect consumers and tackle complaints handling


Also they have published this statement (which I have posted seperately as a sticky)


PPI changes challenged: Can you still complain?




If you have insurance to cover your loan or debt repayments in the event of accident, sickness, reduced income or loss of employment, you can still complain about how the policy was sold to you or the response you received after making a claim. Find out how.

If you have taken out a loan, mortgage or credit card, you may have been sold payment protection insurance (PPI) to cover the repayments if you are unable to meet them in certain circumstances.
These policies can also be called loan protection, credit protection, or accident, sickness and unemployment insurance.
It may have been suggested to you that you needed PPI to be approved for a loan or credit, or even had a policy added to the amount of your loan without your knowledge, increasing the balance you have to repay.
Consumer protection challenged

We took over the regulation of insurance sales in 2005, and since then have found evidence of widespread problems with the sale of PPI and how complaints are handled.
To ensure customers are treated more fairly when complaining about the sale of a PPI policy or after making a claim, we announced a package of measures for firms to follow by 1 December 2010.
These measures include:

• ensuring firms handle complaints properly and offer redress where appropriate;
• explaining when and why firms should review past complaints to identify if there are serious flaws in sales practices that may have affected customers who bought PPI; and
• setting out common sales failings to help firms identify bad practice.

What’s happened now

The banking industry, through trade association the British Bankers' Association (BBA), started legal proceedings on 8 October 2010 to challenge our ability to insist on these measures.
We intend to contest this challenge as we consider the measures to be a fair solution for consumers and the industry.
What to do if you have a complaint

Despite the challenge by the BBA, you still have the right to complain about your PPI policy.
If you have a complaint about the circumstances of the sale of your PPI policy or the suitability of the product for you, you should first complain to the firm that sold it to you.
If your complaint is about a claim you have made, you should raise the matter with the insurance firm.
You are more likely to get a prompt response if you follow the firm’s complaints procedure – you can check online or call to confirm how they prefer you to proceed.
The firm then has eight weeks to look into your complaint and provide a response.

If you are not happy with how the firm has dealt with your complaint you can take it to the Financial Ombudsman Service as soon as possible and within six months of receiving a response. The ombudsman service is a free, independent service for settling disputes between financial services firms and their customers.
The ombudsman service has a template to register a complaint about PPI which you can send to the firm that sold you the policy.
Find out more about what to do if you have a dispute or complaint.
Fairness failings

We have taken action against 24 firms for failings in PPI sales since 2005, with fines totalling nearly £13m. We also stopped the sale of single premium PPI with unsecured personal loans so consumers won’t pay upfront for several years of protection.
The quality of complaints handling is another area of PPI we have focused on.
In the past five years there have been over a million complaints made about PPI. Firms on average reject around half the PPI complaints they receive, but some reject nearly all the complaints, according to figures we received from 18 major sellers of PPI.
Nearly one-third of rejected complainants go to the ombudsman service, where more than 80% are overturned in the consumer’s favour.

[EXC]

Re: Banks challenge new PPI rules

Anyone know what court this is likely to be heard in, can siteteam put the court hearing listing here when it becomes available.

Would love to go to this,think ill write to the FSA.

PF

It's the Administrative Court, probably at the Royal Courts of Justice in The Strand - Keep an eye on the listings page http://www.hmcourts-service.gov.uk/cms/list_admin.htm

According to Tom, Judicial Reviews are scheduled relatively quickly and judgments are often handed down within a few weeks.
In a statement the BBA gave to BBC Money Box, the banks still have to comply with the FSA's requirements from December, until such time as a Judicial Review rules otherwise.

[EXC]

Re: Banks challenge new PPI rules

Duplicate post.

What happened to automerging? Or is that a sore point?

[Amethyst]

Re: Banks challenge new PPI rules

Hmmmmmm lol. Yip.

[NLP]

Re: Banks challenge new PPI rules

Right well... here is a thought, and i have been thinking about this....

This judicial review is actually good for the vultures is it not?

If the new rules came into force in decemeber, banks would have to contact clients about the ppi, and not a vulture cmc company looking for commision?

so as complaints are now continuing, this does them good?

am i right in this?

[Angry Cat]

Re: Banks challenge new PPI rules

Reading on another site, it was said that Lloyds were going to be sending letters out to customers to confirm they will not be dealing with new complaints as from 7th Oct, although this was told verbally, no written concrete evidence as yet.

http://www.bbc.co.uk/news/business-10774616

[pompeyfaith]

Re: Banks challenge new PPI rules

AC,

That report was merely to inform that Lloyds is to stop selling PPI and as did all the other banks et al this was not Lloyds own measure it was forced on the banks by the FSA.

It has nothing to do with banks stopping to deal with complaints.

PF

[NLP]

Re: Banks challenge new PPI rules

maybe we are all just over reacting, as pf mentioned above... they are not actually challenging payouts in the current format... just the new rules that state THEY the banks themselves must instigate the investigation.

[nelliewops]

Re: Banks challenge new PPI rules

On MSE another claimant against Norton Finance said she spoke to her adjudicator at the FOS yesterday afternoon and was told Norton were putting all PPI claims on hold.

My complaint was upheld by an adjudicator last November (Norton ignored it) and again by an ombudsman in April this year. So far Norton have used every excuse in the book not to pay out.

Only this week both they and the FOS confirmed my refund cheque (£9K+) would be sent out this coming week.............so just wondering where this leaves me

Nellie x

[di30]

Re: Banks challenge new PPI rules

Over at another site, a poster claims her housemate works for Lloyds TSB, and was told letters are being sent out to customers to inform them of new complaints being blocked, or they will not be investigating new complaints until further notice.
It seems to be that someone else as well called into their branch this morning - Barclays if I recall on this properly - who asked about their PPI complaint and was told they will not be investigating any further.


But there is no written evidence up to now, so we shall have to see.....