Disappointed BBA considers next step as court throws out PPI case
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The British Bankers’ Association is considering whether to appeal against the High Court’s decision last week on the mis-selling of payment protection insurance.
The court dismissed the BBA’s legal challenge over the way banks should deal with PPI claims.
The BBA launched a judicial review in October 2010 in response to the Financial Services Autho-rity’s guidelines for dealing with complaints. The FSA had advised the industry that it should consider PPI complaints not just by reference to the Mortgage Conduct of Business rules that applied at the time, but to standards based on its guiding principles for doing business.
It was estimated this could lead to more than 2.5 million people being refunded up to £2.7bn in total.
The BBA argued the procedure risked setting a precedent, which would allow the regulator to apply new rules to previous sales for any financial product.
A spokeswoman for the BBA says: “We are disappointed with the judgment and need to consider the next steps, including whether to apply for permission to appeal.”
She says complaints affected by the judicial review will continue to be on hold until the next steps have been decided. The BBA has 21 days to decide whether to appeal.
The FSA has encouraged firms to co-operate with consumers who make complaints and inform them why their case has been put on hold.
It says: “The FSA has not put a waiver in place so firms must deal with complaints where possible, including letting them know they can refer their complaint to the Financial Ombudsman Service if they cannot progress it.”
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