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Banks To Take FSA To Court Over PPI?

Latest reports are stating that some of the UK’s biggest banks are planning to launch what will be seen as an almost-counterstrike like reaction to the current PPI scandal, by taking the Financial Services Authority to court regarding the issue.

With PPI law and rules having confused many customers, the FSA as well as the Financial Ombudsman Service have been instrumental in helping those who were mis-sold the insurance by reclaiming the money back, as well as issuing fines to the banks responsible.

Last month, the FSA set up a new strategy for the implication of PPI law and rules to ensure that there were no more mis-sales of the product, but the banks have responded to this by discussing the possibility of requesting a judicial review regarding the new system, which they believe could lead to retrospective application of the PPI rules – something which could cost the banks thousands in compensation.

This reaction would definitely be seen as a hardening of the bank’s status towards the FSA, following the country-wide controversy that revealed hundreds of thousands of people had been mis-sold the payment protection insurance as part of a loan or credit card.

For more information regarding PPI law and rules, and for information on how you could claim up to £15,000 in mis-sold Payment Protection Insurance, fill in our contact form here@@.

Posted by Shaun Edwards on 09 Sep 2010

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