In what can only be described as a victory for consumers, the British Bankers Association (BBA) has announced that they shall not be appealing the decision by the High Court to reject their Judicial Review into new PPI complaint handling rules.
These new rules were announced by the Financial Services Authority (FSA) in August last year in an attempt to solidify the rules and regulations for the sale of PPI, and to clarify complaint handling procedures. Chief amongst these rules was the direction for the banks to apply these rules to sales and complaints which commenced prior to December 1st 2010 – the date these rules came into force.
It was this rule that caused the BBA to announce in October that they would place complaints on hold pending the judicial review, which started 25th January this year.
This hold was arbitrarily introduced by the vast majority of banks, with the notable exception of Santander, without any form of agreement or waiver from the FSA. This was condemned by the FSA and a number if consumer groups. Indeed, on 21st January the FSA wrote to the BBA informing then that no hold should be in place and that complaint handling should proceed as normal.
The decision to reject the judicial review was welcomed by the FSA, who claimed “…the clear-cut judgment means that banks and other financial businesses should now be in the position to deal promptly, efficiently and fairly with their customers’ PPI complaints”, the Financial Ombudsman Service (FOS) and the same consumer groups. The Which? chief executive said:
“The banks need to admit defeat, stop outsourcing their complaints handling to the ombudsman and finally do the right thing by their customers.”
Lloyds Banking Group announced last week that they would set £3.2bn aside for redress payments. This decision was made before the 21 day period for the BBA to appeal the High Court decision expired. Following this, Barclays announced that they too would set£1bn aside for redress for customers. Earlier on this morning the BBA announced that they would take no further action in order to provide customers with “certainty” over the scandal. The Royal Bank of Scotland group and HSBC have yet to announce how much they will be setting aside to recompense their customers.
Craig Farley-Jones, MD of dev.claimscareline.co.uk – a specialist claims management firm, had this to say about the developments today:
“This is fantastic news for customers who have been victims of the greed of the banks. The behaviour of the banks throughout this saga has been appalling. Now everyone who has been mis-sold PPI can have their money rightfully returned to them.”
He went on to explain how Claimscareline could help those mis-sold PPI:
“The banks first need to locate their customers who have been mis-sold PPI. “The complaint process can at times be a long and drawn out. By acting on behalf of our clients, we can save them time, worry and stress by handling all aspects of their complaint”.
To register your complaint with your bank, contact dev.claimscareline.co.uk through their website, or call them on 0161 713 1735 now!