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Daily Insurance Industry News
Friday 19th of January 2018
October 11, 2010

Banks demand judicial review of new PPI rules

by Gill Montia

Story link: Banks demand judicial review of new PPI rules

New rules from the Financial Services Authority (FSA) on complaints handling for Payment Protection Insurance (PPI) have prompted the British Bankers’ Association (BBA) to ask for a judicial review of some of the decisions made by the regulator and the Financial Ombudsman Service (FOS).

The package of new measures is due to come into force at the beginning of December and the BBA says it “regrets” the need to file papers with the High Court but is taking the course because “there is insufficient legal clarity about what the FSA and FOS is proposing in this area”.

The FSA has responded saying it will “vigorously” contest the review, adding “in the interests of consumers, firms will be expected to continue handling complaints while this process is ongoing”.

In addition, consumers are reminded that if they are unhappy with how their complaints have been handled, they may refer them to the FOS.

According to the FSA, in the last five years there have been more than a million complaints made to firms about PPI.

In 2009/2010 alone, customers referred 49,196 complaints to the Ombudsman who then upheld nine out of ten in the complainant’s favour.

Since the FSA took on regulation of PPI in 2005, it has taken enforcement action against 24 firms for sales failings.

 

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