BBA abandons PPI challenge
Mortgage Solutions | 09 May 2011 | 09:22
IFAonline
The British Bankers' Association (BBA) has drawn a line
under its legal fight to avoid PPI mis-selling payouts.
Last month, the High Court ruled banks must look
again at hundreds of thousands of PPI cases, rejecting a judicial
review brought by the BBA against the FSA.
The BBA had indicated it may appeal but today's decision
to admit defeat means consumers could be in line for billions in
payouts for being mis-sold the policies.
In a statement, the BBA said: "In the interest of
providing certainty for their customers, the banks and the BBA have
decided that they do not intend to appeal.
"We continue to believe there are matters of important
principle which we will be taking forward in other ways with the
authorities."
The BBA's decision come after both
Barclays and
Lloyds indicated they will not participate in any legal
challenge, setting aside billions of pounds for payouts.
The FOS has been receiving around 5,000 PPI complaints per
week in recent months and has warned it could be overwhelmed if
banks continue to be uncooperative.
Natalie Ceeney, chief ombudsman, said: "It's very good
news the banks will not be appealing the High Court's clear-cut
judgment, which endorsed the ombudsman's and the FSA's approach to
PPI complaints.
"We are pleased banks will now be dealing with their
customers' complaints. Consumers should come to us at the ombudsman
if they're unsure about what to do next.
"Meanwhile we will be working with the banks, over the
coming weeks, to ensure that consumers' complaints are dealt with
fairly and promptly."