As the Financial Services Authority vows to fight the British Bankers Association's (BBA's) judicial review of the new payment protection insurance complaints measures, Peter Vicary-Smith of Which? fumes, "It makes you wonder what planet the banks are living on. Not content with the billions they have made from this over-priced, flawed and frequently mis-sold product, the banks now seem to be trying to wriggle out of implementing changes that would ensure consumers are treated fairly. The BBA's taxpayer-backed members should take a long, hard look at themselves and ask why they continue to wage this ridiculous war on consumers."
The Financial Services Authority will contest the BBA judicial review of new payment protection insurance complaints handling measures, “In the interests of consumers, firms will be expected to continue handling complaints while this process is ongoing. If consumers are unhappy with how their complaint has been handled they may refer it to the Financial Ombudsman Service. In the last five years there have been more than a million complaints made to firms about PPI. In 2009/2010 alone, customers referred 49,196 complaints to the Ombudsman that then upheld nine out of ten in the complainant's favour. Since the FSA took on regulation of PPI in 2005 it has taken enforcement action against 24 firms for sales failings. The FSA has carried out three thematic reviews, issued warnings, halted the selling of single premium PPI with unsecured personal loans and visited over 200 firms in order to improve the market. The FSA strongly believes that the package of new complaint handling measures outlined in policy statement 10/12 is a sensible and fair solution for consumers and the industry alike. And that is why the FSA will vigorously contest the BBA's judicial review of the new complaint handling procedures.”
A spokesman for the BBB, who was too ashamed to put their name to the press release, whined, "The British Bankers' Association regrets it has 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. No one wants to go to court but the law needs to be clear."
Income protection insurance: News update: 14 October 2010