A lot of people have heard the words “the Judicial Review” in relation to PPI Claims and don’t know what it is, some may have a vague idea whereas some may already know exactly what it is. What we want to do is bring everybody up to speed, but to do this we have to start at the beginning.

Early PPI investigations

The early part of the initial investigations led to the banning of the sale of the Single Premium PPI policies, announced Jan 2009.

After rumours within the banking industry, about various cases that were being raised in Payment Protection Insurance sales, the FSA decided to implement some tougher measures to protect consumers.

September 2009 brought an agreement with 40% of companies that sold Single/Regular premium PPI policies agreeing to consumers that they would be better treated when buying or complaining about it.

In light of this the FSA then sent out a consultation paper out to companies that were involved in the PPI industry with its thoughts and feelings on how to shape the PPI market and reduce PPI Claims due to mis sold ppi.

They published feedback on the 9th March 2010 which stated 51 companies had sent back detailed responses where consumer groups were very much in favour of the proposals put forward by the FSA but PPI providers and industry groups were very critical.

The FSA took all comments on board then gave and extended deadline of 6 weeks to the 22nd April 2010 for all responses to their amended proposals to be returned to them.

After taking all things into account, on the 24th August 2010 the FSA published its completed policy statement confirming its package of measures to protect consumers in the PPI market.

In this there were a number of things for PPI providers to take on board including:

* A handbook that gave guidance on how to handle complaints properly and to redress appropriately

* An explanation of how/where firms should look over previous complaints to identify serious flaws in their sales practices that have affected both claimants and non-claimants

* An open letter that identified common sales failings so to help companies identify bad practice

The FSA gave them until the 1st December to implement the various changes and to train up the staff.

In accordance with the above published completed policy statement, Dan Waters, the FSA’s director of conduct risk, said:

\”Today is the culmination of months of hard work and now, with these measures, we look forward to consumers being treated fairly whether they are buying or complaining about PPI.

\”Since we took over the regulation of PPI we’ve carried out 24 investigations and three thematic reviews, issued warnings, halted the selling of single premium PPI with unsecured personal loans, visited over 200 firms, and handed out some very significant fines. Now, with this package of measures we’re confident we can mend a market that has been broken for too long.\”

\”This remedy is fair to consumers and the industry alike. The onus is now on the industry to ensure it treats all customers fairly. We will be monitoring the implementation of our guidance closely to ensure real change is delivered.\”

The policy statement follows consultation that saw significant levels of highly detailed feedback from PPI providers, sellers, trade groups and consumer bodies.

The measures follow up on the FSA’s commitment to reform the market and build on the agreement the FSA secured from the industry in 2009 to stop selling single premium PPI on unsecured loans. The FSA has also taken action against 24 firms and individuals for PPI failings with fines totaling approximately £13 million.

Judicial Review

PPI compensation is still ongoing so don’t be deterred!

Then on the 8th October the Banking industry through its trade association the British Bankers Association (BBA) started legal proceedings to challenge the FSA’s ability to insist on the measures published.

However the FSA has strongly challenged them as they feel that the measures are both fair to consumer and the industry alike.

Now we are all waiting for the outcome of the Judicial Review which according to issue 91 of the Financial Ombudsman news:

\”The judicial review is scheduled to take place in the High Court in London during the week beginning Monday 24 January 2011\”

Lets hope that unlike the debacle that was the Bank Charges test case that inexplicably went in favor of the banks that this time the judges see sense and rule in favor of the innocent consumer.

Reclaim PPI today with expert claim advisors.

Author Bio: This article is to give as much pre and current information on the judicial review and how it affects PPI claims. Reclaim PPI with an expert to deal with your claim as they submit claims all the time and are up to date with current legislation. PPI compensation is still ongoing regardless of the review.

Category: Finances
Keywords: ppi,ppi claims,reclaim ppi,claim back ppi,payment protection insurance,mis sold ppi claims