High Court dismisses BBA’s and NPF’s judicial review of FSA’s PPI complaints handling measures
The High Court has dismissed the British Bankers’ Association’s (BBA) challenge to the FSA’s complaints handling measures in relation to alleged miss-selling of Payment Protection Insurance (PPI).
PPI is a form of insurance which is geared to assisting with a debtor’s repayments under a loan. For example where the debtor loses his or her job and is unable to meet his or her repayments under the same.
There has been a plethora of reports in the press which skim the surface of the degree of instances of miss-selling of PPI. Indeed many debtors find that on entering a consumer credit agreement there is a “hidden charge” for insurance called PPI and many consumers find it difficult to achieve a result when complaining to their respective lenders.
The FSA have been tackling this situation since 2005 and yesterday’s ruling (the FSA say) “signals the end of years of poor complaint handling and will trigger a dramatic improvement in the way customers are treated when complaining.”
It has been reported that the effect of the ruling could mean that the banks are open to a bill of up to £4.5bn from future complaints submitted by consumers over the next five years and with £3.2bn being spent on reviewing historic PPI sales.
Yesterday’s ruling is unlikely to be the end of the matter however, BBA and NPF may seek to file for permission to appeal pursuant to CPR 52.
Watch this space…
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