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Daily Insurance Industry News
Friday 19th of January 2018
May 9, 2011

BBA backs down on PPI complaints appeal

by Gill Montia

Story link: BBA backs down on PPI complaints appeal

BBA backs down on PPI complaints appeal BBA backs down on PPI complaints appeal

The British Bankers’ Association (BBA) will not be appealing against April’s High Court judgment regarding banks’ handling of Payment Protection Insurance (PPI) complaints.

Following a judicial review of the Financial Services Authority (FSA) and Financial Ombudsman Service, the BBA had been given until 10th May to appeal against a ruling in favour of new FSA rules on PPI complaints handling, which include a retrospective element.

However, the BBA states: “We continue to believe that there are matters of important principle which we will be taking forward in other ways with the authorities.”

Last week, Lloyds Banking Group announced that it had made a £3.2 billion provision for potential costs of customer contact and/or redress over sales of PPI, and while RBS has so far held back on naming a figure, the group says PPI redress costs will be “material”.

Meanwhile, Barclays has today confirmed that it will begin to process all on-hold and any new complaints from its PPI customers as “quickly as practicable”.

The bank is making a provision to cover the cost of future redress and administration of £1 billion in the second quarter 2011.

 

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