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MSE News: Banks put PPI claims on hold in defiance of regulator

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  • tiggrae
    tiggrae Posts: 1,771 Forumite
    Cardinals wrote: »
    Somewhat discouraging news from the Ombudsman......



    ombudsman news "Q&A" page

    featuring questions that businesses and advice workers have raised recently with the ombudsman's technical advice desk – our free, expert service for professional complaints-handlers.
    What's the latest on the judicial review on payment protection insurance (PPI) complaints – being brought by the British Bankers Association (BBA) against the FSA and the ombudsman? And how is it affecting PPI complaints with the ombudsman?
    On 8 October 2010 – on behalf of a number of high-street banks – the British Bankers Association (BBA) filed papers in the High Court requesting a judicial review of the Financial Services Authority (FSA) and the Financial Ombudsman Service.



    This is a legal challenge relating to:
    • the FSA's new payment protection insurance (PPI) complaints-handling measures that came into force on 1 December 2010 and
    • information on our website about the approach we take to consumers' complaints that they have been sold PPI policies inappropriately.
    The judicial review is scheduled to take place in the High Court in London during the week beginning Monday 24 January 2011.

    At the time the BBA launched its legal challenge, we confirmed that we would continue to deal with PPI complaints, while awaiting the outcome of the court case. This has meant that we have continued to receive and process new PPI cases – now being referred to us at a rate of up to 2,500 each week.

    This number has been increasing. Many businesses are continuing to handle complaints as normal but some have decided that they will not respond substantively to many PPI complaints until the final legal outcome is known.
    The consumers in these cases can still bring their complaints to us – but only once they have first given the business eight weeks (the time the business has to sort out complaints under the FSA's 'DISP' complaints rules).

    The increase in PPI cases referred to us by consumers, where the businesses involved have not set out their conclusions on the complaints by the end of that eight-week period, means the rate at which we can settle these cases is now slowing down.
    Where businesses do not set out clear views on cases, it will be difficult for our adjudicators to resolve cases informally. Inevitably this can only result in further delays and additional costs.

    We regret any reduction in service levels for customers with PPI complaints. Consumers and businesses with complaints about all other financial products and services will remain unaffected by this.
    thanks for that Cardinals, I've just emailed the Chief Ombudsman Natalie Ceeney as this is just going from bad to worse, it appears the banks are totally omnipotent and no one with any authority is willing to say Enough is Enough !!!
  • Alpine_Star
    Alpine_Star Posts: 1,372 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    tiggrae wrote: »
    thanks for that Cardinals, I've just emailed the Chief Ombudsman Natalie Ceeney as this is just going from bad to worse, it appears the banks are totally omnipotent and no one with any authority is willing to say Enough is Enough !!!

    The problem is - and this is not a criticism - the FOS, as an independent assessor of individual complaints, is not in a position to say enough is enough.

    As they say themselves ''We don't write the rules for businesses – or fine them if rules are broken. That is the job of the regulator''.
  • Alpine_Star
    Alpine_Star Posts: 1,372 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Nemo Finance are now a litigant party to the Judicial Review.
  • Just when it looked as though it was getting bleaker and bleaker....

    THE CAVALRY HAS ARRIVED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • Alpine_Star
    Alpine_Star Posts: 1,372 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ''Lloyds Banking Group has begun a mass mailshot of 231,000 letters offering possible refunds to Halifax customers who may have been mis-sold Payment Protection Insurance on their credit cards, under a costly and large-scale outreach programme codenamed Project Kestrel.

    Internal documents obtained by the Observer reveal that 8,300 letters went out last Monday. Almost a quarter of a million will be dispatched by mid-February, asking credit card customers to contact a special call centre operated by outsourcing firm Capita.''


    Lloyds offers compensation to Halifax customers over credit card protection | Business | The Observer


  • Alpine_Star
    Alpine_Star Posts: 1,372 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 23 January 2011 at 1:36PM
    The FSA have written to the BBA and other trade organisations who's members are handling PPI complaints, warning them that refusing to process complaints pending the Judicial Review that clearly don't touch on issues that are being disputed in the Judicial Review, will face tough enforcement action.

    The FSA have indicted the types of complaint which they expect to be fully processed. This will be useful to claimants who have been told that their complaint has been put on hold.

    http://www.fsa.gov.uk/pages/consumerinformation/product_news/insurance/pdf/fsa_ppi_letter.pdf
  • dunstonh
    dunstonh Posts: 119,871 Forumite
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    The FSA have written to the BBA and other trade organisations who's members are handling PPI complaints, warning them that refusing to process complaints pending the Judicial Review that clearly don't touch on issues that are not being disputed in the Judicial Review, will face tough enforcement action.

    The FSA have indicted the types of complaint which they expect to be fully processed. This will be useful to claimants who have been told that their complaint has been put on hold.

    http://www.fsa.gov.uk/pages/consumerinformation/product_news/insurance/pdf/fsa_ppi_letter.pdf

    That seems sensible as at the moment, the banks seem to be putting all PPI complaints on hold. Obviously that is wrong and the FSA is right to tell them to deal with the ones not covered by the JR.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • foxy23
    foxy23 Posts: 6 Forumite
    Hi can anyone give me some advice I have been fighting NatWest for two years on my PPI, They have offered me two £1500 as a good will gesture last year which I refused. I went to the financial ombudsman service who have taken a year and half to investigate my claim and now I have reecived a letter from the adjudicator telling me she has upheld my complaint but Natwest disagree with her decision. They now are telling me it is going to the ombudsmen for a final decsion which because of the large volumes of complaints may be some time, I thought it was with the ombudsman what's the difference with an adjudicator and the ombudsman????. I have learnt that all claims are now on hold. Is that for everyone even if they are already with the ombudsman, i really feel im ready to give up. Help :(:(:(:(
  • di3004
    di3004 Posts: 42,579 Forumite
    foxy23 wrote: »
    Hi can anyone give me some advice I have been fighting NatWest for two years on my PPI, They have offered me two £1500 as a good will gesture last year which I refused. I went to the financial ombudsman service who have taken a year and half to investigate my claim and now I have reecived a letter from the adjudicator telling me she has upheld my complaint but Natwest disagree with her decision. They now are telling me it is going to the ombudsmen for a final decsion which because of the large volumes of complaints may be some time, I thought it was with the ombudsman what's the difference with an adjudicator and the ombudsman????. I have learnt that all claims are now on hold. Is that for everyone even if they are already with the ombudsman, i really feel im ready to give up. Help :(:(:(:(


    Hi there

    Hang in there, this is common, and its procedure if the bank/business does not agree or if they ignore the Adjudicators decision, this will automatically be moved on to the Ombudsman.
    The bank will have to agree with the ombudsman's decision where they do not have to accept the decision made by the Adjudicator.

    Lots are in the same position.

    Stay strong now, I understand you have already waited a long time, but with a bit of luck it will all be resolved in due course.

    Good luck.
    The one and only "Dizzy Di" :D
  • dunstonh
    dunstonh Posts: 119,871 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    foxy23 wrote: »
    Hi can anyone give me some advice I have been fighting NatWest for two years on my PPI, They have offered me two £1500 as a good will gesture last year which I refused. I went to the financial ombudsman service who have taken a year and half to investigate my claim and now I have reecived a letter from the adjudicator telling me she has upheld my complaint but Natwest disagree with her decision. They now are telling me it is going to the ombudsmen for a final decsion which because of the large volumes of complaints may be some time, I thought it was with the ombudsman what's the difference with an adjudicator and the ombudsman????. I have learnt that all claims are now on hold. Is that for everyone even if they are already with the ombudsman, i really feel im ready to give up. Help :(:(:(:(


    Theoretically, if the judicial review outcome is such that your complaint is one that should be rejected then you could find the bank withdraw their offer and you end up with nothing. It doesnt normally happen but the banks are taking a stronger line and people who kept pushing for more with bank charges ended up losing out when that court case outcome came about. So, it can be a bit risky pushing for more.

    The FSA has just issued guidance on complaints which must still be considered despite the JR. It really depends on whether you complaint first that criteria or not.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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