Call us free on 08000 70 60 70
PPI Claims put on Hold by the Banks
Fri, 16 Mar 2012 12:19:40 GMT
The British Bankers association (BBA) have recently submitted papers to the High Court asking for a Judicial review of the new Financial Services Authority (FSA) rules regarding the handling of Payment Protection Insurance (PPI) complaints.
The new FSA rules are due to come into effect on 1st December 2010 and they include new guidance on how providers should handle PPI complaints. The main reason that the bankers have lodged the court action against these new rules is that they may have to re open some of the 185,000 complaints that they have already turned down.
The FSAs response to BBAs request for a Judicial review states that they will "vigorously contest" this review as the new measures outlined in their policy statement offer a "fair and reasonable solution for consumers and the industry alike"
In a further development Lloyds TSB group (which include Lloyds, Halifax and HBOS) announced on Monday that they will stop processing PPI claims until the Judicial review has been completed. We have spoken to Lloyds claims department and their staff have confirmed this. They will accept and acknowledge claims but not progress them. Also they have stated that they will be having a two week moratorium on progressing any current claims in their system, even if any offer has been made and accepted by the customer.
Today Barclays Bank have also come out and stated that they will also stop progressing any PPI Claims until the judicial review has been completed.
Santander have stated that they will continue processing claims as normal throughout the judicial review.
We are waiting for the other banks to announce their position in this matter and we will update the website when we know.
It will be interesting to see what the FSA response to this situation is. The banks that have come out and openly stated that they will not progress complaints are in breach of current FSA regulations let alone the new regulations.
Having taken advice from the Financial Ombudsman their stance is that it is business as usual and they will carry on handling complaints as normal.
What does this all mean for people who wish to make a claim for a PPI Refund?
You can still make a claim against any Bank even if they have stated they will not progress a complaint until after the Judicial review.
What we will do if you want to make a complaint
- We will lodge your complaint with the provider
- If they are still progressing claims then everything will happen as normal.
- If the provider is not progressing claims we can wait the statutory 8 weeks and send the case straight through to the Financial Ombudsman who will then progress the case as normal. The Financial Ombudsman upholds over 90% of the claims it processes and then instructs the bank to make a full refund.
Not sure if you've got a PPI Claim? Our specialists are on hand and offer a fast free friendly advice service. Simply Call Us FREE On 08000 70 60 70 or fill in our Speed Claim box on the home page, where you can request a call back from a PPI claim specialist at a convenient time to suit you between the hours 9am - 8.30pm Mon - Fri.