MSE News: Banks bid to block PPI compensation

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The BBA is seeking a judicial review to stop lenders having to review millions of debt insurance sales ..."

Read the full story:
Banks bid to block PPI compensation

debt55

so wendy agrees... keep on complaining, the banks must continue to review complaints in the interim period.

Alpine_Star

BBA statement on PPI

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.”

davidgmmafan

Amazing isn't it how banks say oh we don't want to fight with our customers, and work with the regulator etc etc, yet do the opposite in practice. This industry is a bad joke, its not even funny.

dunstonh

It makes sense. With estimates between one third and one half of PPI complaints being fraudulent or try-it-on, its no surprise that they want action taken.

Banks are more prone to mis-selling. However, that isnt an excuse for people to fraudulently complain. There is pressure to get the complaints system changed because of consumer abuse. Every time someone puts in a try-it-on or fraudulent complaint, they are just providing further ammunition to those that want to be able to take action against those that do not have a successful complaint.

I have seen some of these complaints against IFAs and mortgage advisers. I know one relatively new mortgage adviser who was almost moved to tears when someone complained about him. The letter didnt reflect the reality and luckily he had proof to combat the complaint but it still cost him £500 to deal with. Too many of those with a new adviser and it can put them out of business.

debt55

dunstonh wrote: »

It makes sense. With estimates between one third and one half of PPI complaints being fraudulent or try-it-on, its no surprise that they want action taken.

Banks are more prone to mis-selling. However, that isnt an excuse for people to fraudulently complain. There is pressure to get the complaints system changed because of consumer abuse. Every time someone puts in a try-it-on or fraudulent complaint, they are just providing further ammunition to those that want to be able to take action against those that do not have a successful complaint.

I have seen some of these complaints against IFAs and mortgage advisers. I know one relatively new mortgage adviser who was almost moved to tears when someone complained about him. The letter didnt reflect the reality and luckily he had proof to combat the complaint but it still cost him £500 to deal with. Too many of those with a new adviser and it can put them out of business.

what makes sense? this is the BIG BANKS taking this action, not little pete the IFA around the corner.

dunstonh

debt55 wrote: »

what makes sense? this is the BIG BANKS taking this action, not little pete the IFA around the corner.

The number of try-it-on and fraudulent complaints is across the board.

debt55

dunstonh wrote: »

The number of try-it-on and fraudulent complaints is across the board.

righto... and what has that got to do with this please?

have you read the FSA rules that are to be implemented in Dec... and are now being challenged by the BBA?

i would be very confident in saying NO... as you have totally missed the point of the challenge!

NIGELK_3

Do we have a timeline yet for this court case? Will it be before the 1st December PPI rule changes or afterwards? Just wondering as I have several (genuine) PPI claims in place and hope they don't go the way of the bank charges court decision - and get frozen.

debt55

NIGELK wrote: »

Do we have a timeline yet for this court case? Will it be before the 1st December PPI rule changes or afterwards? Just wondering as I have several (genuine) PPI claims in place and hope they don't go the way of the bank charges court decision - and get frozen.

FSA/FOS have said claims should continue and after 8 weeks... if no result from the lender... bang it to the FOS

they will investigate.. and they uphold nigh on 90% of claims

dont let the banks off the hook!

liberty_lily

The company I've reclaimed from has been delaying paying my refund for 6 months (since an ombudsman upheld an adjudicator's decision which then became legally binding) and have only just arranged to issue the refund in the next 7 days - 'twill be just my luck if they see this as yet another excuse not to pay.............:mad: