Banks to challenge ppi mis-selling - all claims on hold

debt55

They won't get off the hook, they may buy themselves some time, but that is about it.

They get fined if complaints go to the FOS, so in the end, if the number of complaints rises to the FOS the banks will realise it is costing them more.

Especially as the FOS uphold 80-90% of claims in the end anyway.... the 8% just totts up nicely :money:

kittiej

Well at least give us a clue -

Is it 'the Big bank', 'For the journey' bank, the bank with the racing driver, the bank with the customer charter and has the mobile bank, the one with supermarkets and funeral plans, the 'isa isa baby' bank, who else?

Oh yes, the bank which used to be the Midland Bank

trip7dan

This is exactly what happened with Bank Charges and I would expect a very similar outcome.

yes it is likely the banks will be fined, no they wont give a damn, it's the lesser of two evils. (the 2nd evil being that it would destroy Britain's banks and that is no exaggeration)

And I think 3.2 billion is too optimistic. I'd expect a figure more like 40 billion

amersall

notveryhappi. wrote: »

ok but you heard it here first

Sorry but we didnt.
http://forums.moneysavingexpert.com/showthread.php?t=2718701&highlight=ppi+help

marshallka

I have no objection to the banks fighting back, I would not expect them to just cave at EVERY complaint but what I do have objection to is putting complaints on hold when the complaints were to do with "rules" about sales of insurance that were put in place years prior. Rules that the bank had a duty to follow.

Regulators are there for consumer protection and they should be allowed to put rules in place after reviewing evidence. They did not just listen to the consumer here and bang together a few rules, they did their own research and through research they found the banks to be largely at fault of misselling.

I realise there are lots of try it on complaints but it is then the banks job (through their own complaints procedure) to dismiss the complaint and then let the consumer decide what to do about taking to FOS. IF it is that after reveiwing the sale of the PPI the FOS finds the PPI to have been blatently missold then it should stand that it was missold, they should not argue anymore as FOS actually review files, phone calls etc and come to their conclusions from that and they are not on anyones side.

What is the banks argument? It is not that the FSA are telling them they must uphold all complaints. They are saying to them to treat customers fairly and do the job that FOS does from the onset, review their records of the sale and do it properly and pay consumers that have been missold back.

FOS should not have the number of complaints that it does handle. The banks should put this right within the 8 weeks on obvious missales instead of just dismissing the complaint, not looking into records and hoping the problem just goes away.

di3004

http://www.bba.org.uk/media/article/bba-statement-on-ppi

BBA's own statement.......

BBA brings judical review

The BBA said in a statement:

"The British Bankers' Association regrets that today it has had to file papers with the high court asking for some decisions made by the Financial Services Authority and the Financial Ombudsman Service to be judicially reviewed. This relates to the proposed new rules that are due to be implemented at the end of this year on handling payment protection insurance complaints.
"It has unfortunately been necessary to do this because there is insufficient legal clarity about what the FSA and FOS is proposing in this area. Everyone's actions must be assessed on the basis of a proper understanding of the relevant law and regulation and this procedure will bring this about
"We will continue to explore all opportunities for dialogue with the FSA to resolve the industry’s concerns. No one wants to go to court but the law needs to be clear. We hope to get this resolved as quickly as possible."

amersall

Nowhere have i read that complaints will be put on hold.The fos expect banks to continue with claims.
If they will or not is another matter. Op, or anyone who has confirmation of any of these banks putting claims on hold please post, as i think fos need to know of this.

debt55

amersall wrote: »

Nowhere have i read that complaints will be put on hold.The fos expect banks to continue with claims.
If they will or not is another matter. Op, or anyone who has confirmation of any of these banks putting claims on hold please post, as i think fos need to know of this.

same here, not read it anywhere, but i can imagine they will try it on, cost them more in the long run if we keep sending them to the FOS who charge 475 every time.

so no problem, give them 8 weeks... then send to the FOS

MAKE THIS A CAMPAIGN TO URGE COMPLAINTS TO BE FORWARDED TO THE FOS AFTER 8 WEEKS

marshallka

I totally agree, nowhere does it say "officially" that complaints will be on hold except in this thread.

I guess until we hear anything officially then we are to believe that complaints have not been put on hold!!!!

di3004

Found some earlier news on complaints handling issued by the BBA....

http://www.bba.org.uk/media/article/bba-statement-to-fsa-complaints-data-publication

BBA statement to FSA complaints data publication
30/09/10

The BBA said:
“The UK banking industry is committed to its customers and to resolving problems as quickly as possible, that is why a lot of complaints are resolved by close of business the next day. It is extremely important to keep the figures published by the FSA in context: The larger the bank is the more complaints it is statistically likely to receive and with more than 140 million bank accounts in the UK and billions of transactions a year there will inevitably be instances when things go wrong.
“The banking industry welcomes greater transparency but is concerned that the separate publication of complaints data by the Ombudsman and the Regulator could lead to data overload. What should be a useful overall summary could become a complex and confusing exercise.
”We will also be responding in full to the FSA’s consultation on changing the complaints handling regime. We agree on the need for a clear, transparent complaints process which sets out all the options for customers."