BBA - v FSA - PPI Judicial Review

[citizenB]

Links in this post were irrelevant to the thread and have been removed

Edited January 17, 2011 by citizenB

[citizenB]

 

This has been listed for the 25th Janaury for 4 days Counsel for the groups are:

 

Counsel for FSA:

Micheal Brindle QC

Monica Carss-Frisck QC

Richard Coleman

James McClland

 

Counsel for FOS:

Hodge Malek QC

James Strachan

 

Counsel for Nemo:

Micheal Fordham QC

Edited January 17, 2011 by citizenB

[rebel11]

So the key date is the 25th Jan?

[citizenB]

So the key date is the 25th Jan?

 

Looks like it

[citizenB]

Ooops, tit for tat, perhaps ?

 

 

BBA action could lead to £30m rise in FOS levy

13 January 2011 at 19:15

 

The British Bankers' Associations (BBA) contesting of new rules governing complaints over payment protection insurance (PPI) could lead to a £30 million rise in Financial Ombudsman Service (FOS) levies.

http://www.compliancy-services.co.uk/news/article/631/bba-action-could-lead-to-pound-30m-rise-in-fos-levy

 

 

 

[citizenB]

10th January 2011

 

Financial Ombudsman consults on its plans and budge for the year ahead.

http://www.financial-ombudsman.org.uk/news/updates/plan_and_budget_11-12.html

 

 

10th January 2011

 

FOS warns PPI review may exhaust budget

http://www.moneymarketing.co.uk/regulation/fos-warns-ppi-review-may-exhaust-reserves/1024326.article

 

 

11th January 2011

Final notice to RBS and Natwest in respect of £2.8million fine imposed

http://www.fsa.gov.uk/pubs/final/rbs_11jan11.pdf

 

11th January 2011

RBS agrees settlement with FOS

http://telegraph.uk-wire.com/cgi-bin/articles/201101111016372521Z.html?epic=RBS

Edited January 17, 2011 by citizenB

[citizenB]

11th January 2011

Lloyds snubs FSA and puts claims on hold

http://uk.finance.yahoo.com/news/Lloyds-snubs-FSA-puts-PPI-tele-2126473987.html?x=0

 

 

 

Interesting that in September 2010 - Lloyds were among the top 3 most complained about banks...

 

Lloyds causes most complaints

 

Lloyds Banking Group was revealed to have received 288,717 complaints, Barclays 250,667 and Santander 244,978. Disputes were caused by the firms' day-to-day banking activities and also by "general insurance", which includes payment protection insurance.

 

http://www.which.co.uk/news/2010/09/banks-top-fsa-complaints-table-231935/

 

[url=http://www.which.co.uk/news/2010/09/banks-top-fsa-complaints-table-231935/][/url]

Edited January 17, 2011 by citizenB

[citizenB]

FSA gained its new powers of redress in October 2010

 

FSA/PN/155/2010

12 October 2010

 

The Financial Services Authority (FSA) has today been granted a new power to deliver prompt and effective redress for consumers.

 

The new power was part of April’s Financial Services Act 2010, and has been activated today, along with other changes, by a Commencement Order laid in Parliament by HM Treasury.

 

http://www.fsa.gov.uk/pages/Library/Communication/PR/2010/155.shtml

 

and

 

 

The Financial Services Authority (FSA) has been granted the power to force businesses to establish collective redress schemes to compensate consumers and publicise enforcement actions earlier.

 

http://citywire.co.uk/wealth-manager/fsa-gains-collective-redress-powers/a439181

 

[citizenB]

23 July 2010

 

FSA Guidance Note

Consumer Redress scheme

 

1.2 The guidance note explains the power in s. 404 of the Financial Services and Markets Act 2000 ("FSMA") which enables the FSA to make rules requiring firms to establish and operate consumer redress schemes.

 

http://www.fsa.gov.uk/pubs/guidance/guidance10.pdf

[citizenB]

17 January 2011

Lloyds Bank risking clash with FSA over PPI complaints

 

http://www.telegraph.co.uk/finance/personalfinance/insurance/8059659/Lloyds-risks-FSA-clash-over-customer-PPI-complaints.html

[citizenB]

14th October 2010

 

Banks will no longer be able to sell payment protection insurance policies when granting loans to customers, the Competition Commission has confirmed.

http://www.bbc.co.uk/news/business-11537187

 

Banks will apparently have to wait for 7 days before being able to offer this product to their customers.

[citizenB]

Notice on the FOS website

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

 

legal action on payment protection insurance (PPI)

 

the ombudsman will continue to handle consumers' complaints about payment protection insurance – despite the legal action ("judicial review") launched on 8 October 2010 by the British Bankers Association (BBA) against the FSA and the Financial Ombudsman Service on the approach to PPI complaints handling

 

[citizenB]

21st January 2011

 

http://www.fsa.gov.uk/pages/consumerinformation/product_news/insurance/pdf/fsa_ppi_letter.pdf

 

FSA letter to :

 

Michael Coogan, CML

Angela Knight, BBA

Stephen Sklaroff, FLA

Stephen Gay, AFB

Margaret Craig, ABI

Adrian Coles, BSA

 

The handling of PPI complaints during the Judicial Review Process.

 

"We intend to review the handling of PPI complaints by firms over the course of 2011 and, as explained above, will have regard to the contents of DISP Appendix 3 in the same way as we would have regard to any other FSA guidance and evidential provisions

 

We will take tough action against any firm which cannot demonstrate it is delivering fair outcomes for consumers, including beause the firm is inappropriately relying on DISP 1.6.2R(2) to defer consideration of those PPI complaints that could and should be progressed during the judicial review. Such action may include referral for further investigation and enforcement action where appropriate"

[citizenB]

23rd January 2011

 

http://www.guardian.co.uk/business/2011/jan/23/lloyds-halifax-payment-protection-insurance-refunds

 

xx

 

Lloyds offers compensation to Halifax customers over credit card protection

Part-nationalised bank begins costly mailshot to discover if credit card customers were mis-sold payment protection insurance

 

Lloyds Banking Group has begun a mass mailshot of 231,000 letters offering possible refunds to Halifax customers who may have been mis-sold payment protection insurance on their credit cards, under a costly and large-scale outreach programme codenamed Project Kestrel.

 

The controversy will reach the high court this week, as the British Bankers' Association seeks a judicial review of guidance from the Financial Services Authority on compensation. Banks complain that the FSA has retrospectively changed the rules on how policies should have been sold.

[citizenB]

http://www.bbc.co.uk/news/business-12265617

 

And you can keep up with events with the BBC - Thank you MichaelBrowne for the link

 

JR hearing starts, tomorrow, 25th January and is expected to continue until Friday.

Edited January 25, 2011 by citizenB
incorrect date, amended

[citizenB]

http://www.telegraph.co.uk/finance/personalfinance/insurance/incomeprotection/8279129/PPI-how-the-scandal-spanned-three-decades.html

 

PPI - How the scandal spanned 3 decades

 

1998: Issue of PPI being a poor-value product because of expense and exclusions first raised in Which? magazine.

 

 

1998-2005: PPI problems highlighted in The Daily Telegraph and The Sunday Telegraph.

 

 

January 2005: FSA takes on the regulation of the sale of general insurance. It says PPI review one of its priorities that year.

 

 

September 2005: Citizens Advice publishes Protection Racket report identifying problems in PPI market. It issues “Super Complaint” to the Office of Fair Trading over PPI sales. read more >>>

 

 

[citizenB]

http://www.competition-commission.org.uk/inquiries/ref2007/ppi/pdf/working_paper_profitability_of_ppi.pdf

 

In their working paper - Profitibility of PPI linked above, the Competition Commissioner focused on 3 main PPI products:

 

Personal loan

First charge mortgage

Credit cards

 

In 2006, these 3 products made up 83% of the GWP (48 , 12 and 23 percent respectively) underwritten by the largest six underwriters !

 

It would appear that in 2006 a declining market would have been loss making had it not been for the PPI products sold alongside.

 

in 2006 an estimated 6.5 million policies were sold annually making £5.4billion per annum !!!!!

[manchesteruni]

 

in 2006 an estimated 6.5 million policies were sold annually making £5.4billion per annum !!!!!

 

Sorry CB just made me smile Is it okay to post the reports of todays hearing on here later ?

[Michael Browne]

Is it okay to post the reports of todays hearing on here later ?

Please do.

[citizenB]

Yes, please do, manchesteruni.

 

I am quite surprised that very few people have contributed to the thread. Perhaps I have it in the wrong place ?

[manchesteruni]

It is a bit hidden away down here, I'd have put it in Campaign.

 

Basically (very basically) today was a bit boring, the BBA were on all day and have another hour to go tomorrow, then the FSA and FOS will get their turn. Few small bits of interest but will write those up later on, and as always no idea which way it is going, although the BBA seemed to be flailing a little and going round in circles with their arguments.

[citizenB]

Thank you, so do you think this is likely to go on for the rest of the week ?

[Undercover-Elsa]

Nonetheless we are here, watching quietly and being very, very good

[manchesteruni]

Well, only quoting someone else,

 

''even if the application stage takes 3 days then it doesn't really matter as most of the arguments will be heard now whilst deciding on the applications and the substantive stage can get done in day or two. '' so it could still be finished Friday - but sounds like final decision won't be until Easter ?

 

Interesting bit will be whether the JR against FOS is chucked out.

Edited January 25, 2011 by citizenB

[manchesteruni]

Sorry, autolink came up, feel free to edit.