Banks lobby to curtail PPI claims

[Michael Browne]

Banks In Secret PPI Lobbying Push

 

As the cost of the mis-selling scandal continues to rise, the UK's biggest banks strive to limit their total bill.

 

Britain’s banks have embarked on a secret lobbying drive to curtail the soaring cost of the payment protection insurance (PPI) mis-selling scandal.

 

The effort to limit the industry’s bill comes as the tab for the four biggest high street banks (Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland) last week passed £10bn following a rush of new claims submitted in the third quarter of the year.

 

The British Bankers’ Association (BBA) is now in talks with the City regulator to urge it to declare that the point at which consumer awareness of PPI mis-selling is widely-known has now legally been reached.

 

Under existing rules, customers have six years from the date on which they were sold a PPI policy to complain that it was mis-sold; however, they are also allowed to submit a claim three years after the point at which they say they became aware they were mis-sold to, even if that date is after the end of the six-year period.

 

The BBA is now arguing that because publicity about PPI mis-selling has been so widespread in the media and an advertising blitz orchestrated by claims management companies (CMCs), the Financial Services Authority (FSA) should now declare that the ‘point of knowledge’ has been passed.

 

 

http://news.sky.com/story/1008736/banks-in-secret-ppi-lobbying-push

[ims21]

Absolutely outrageous and words nearly fail me (apart from many that I couldn't put on open forum).

 

Not only have the banks done millions of people over on bank charges and got away with it (and continue to do so), they are now suggesting that their damage should be limited on the PPI scandal.

 

This is despite the fact that they deliberately and systematically striped up millions of innocent people for billions of pounds and now they have been found out do not want to pay it back.

 

What a crying shame that it has cost them in excess of £10 Billion up to now. I hope it costs them much, much more.

 

In any other walk of life this deliberate and systematic activity would have fallen into a bracket where possible criminal charges could have been considered.

 

Hopefully the FSA will remain strong in their stance on this and continue to allow the innocent victims to reclaim their money for this scandal.

 

Looking forward to the banks reaching £20 Billion in redress payments and far beyond that.

 

They fully deserve whatever the final bill is and the derision of the general public.

[citizenB]

I guess we shouldnt be surprised at this. I too hope the FSA stand firm and dont allow the banks to dictate when they should stop paying for their greed.. !

[dx100uk]

urm i didn't think there was any time limit?

 

when you became aware?

 

i thought the 3yrs thing was IF they write any tell you about you have ppi to reclaim was it not?

 

dx

[MSAR]

Now the banks are saying, "oh dear, we can't afford to pay back all the money we took from our customers, let's just pretend it didn't ?"

 

Just for credit cards, given that there are 400,000 school leavers each year, the PPI [problem] has been going on for 20+ years, and each claimant gets back on average £2500, then that works out to £20 billion. Loans and mortgages could double that.

Edited November 11, 2012 by MSAR

[underdog13]

So the banks can't afford to pay back their debts to the consumer........and how do they treat the consumer if he/she can't pay back their debts?! Perhaps we should all send in the debt collectors, threaten court and bankruptcy and generally harrass them night and day.

[MSAR]

Many banks put in a notice in one of their monthly statements at some time or other, saying that "if you have PPI on your account, you might have been mis-sold, and should complain if you felt you were mis-sold". But if any customer didn't believe that you did have PPI on you account, then they wouldn't have done anything.

[ro284]

As i understood it, The banks were supposed to be contacting everyone, regarding mis-sold payment protection insurance! So looks like that is not going to happen! i am still waiting for them to follow up that announcement!

[citizenB]

As i understood it, The banks were supposed to be contacting everyone, regarding mis-sold payment protection insurance! So looks like that is not going to happen! i am still waiting for them to follow up that announcement!

 

 

That was my understanding as well. I think I might have a search for the FSA instruction on that..

[dx100uk]

t'was a case of the banks 'should' make a reasonable effort to advise customers

 

however there was no must, nor thats any customer they had no details of should be made aware.

 

there is actually a downside

 

IF they write to you

 

you only have 3yrs.

 

dx

[MSAR]

My bank (Clydesdale) claims to have sent a notice in their May 2003 statement that they thought PPI might have been mis-sold to some of their customers.

[intend]

Is it worth writing to your bank now stating you will be making a claim for mis-sold PPI and thus registering your intention should they get their own way???

 

Am sure many customers may have moved on and so many letter might not have been received.

[MSAR]

Is it worth writing to your bank now stating you will be making a claim for mis-sold PPI and thus registering your intention should they get their own way???

 

Am sure many customers may have moved on and so many letter might not have been received.

 

I am already doing so. Back in January 2003, her indoors expressed her greatest displeasure about finding dozens of PPI charges while I was working away from home. She thought they were something I was paying for (like hotel internet, Oyster cards). Cancelled the PPI and sent in a claim. They refused to give back the money then..

 

Now trying with the Financial Ombudsman.

[citizenB]

http://www.guardian.co.uk/money/2012/mar/06/ppi-misselling-banks-write-customers

 

Here you go...

 

The FSA has issued guidelines on what the letters must include, and is now consulting on these with banks.

 

The guidance states that the letters should be clear and fair, and free from financial jargon and marketing material. They must:

 

• make it clear that the letter contains important information and should be read carefully;

• say that the customer may have been mis-sold insurance and outline the specific failings that lead the firm to believe this may be the case;

• say that the customer may have suffered a financial loss and could be entitled to redress;

 

• make it clear that the letter requires careful and immediate consideration and there is a time limit for making a complaint.

 

This article was dated March 2012 so they have until March 2013 to issue these letters. One assumes that the final highlighted section starts to apply and they have 3 years (or advised time limit) from the date of receipt of the letter to make their claim.