UK banks challenge PPI rules
The UK banking community, backed by the British Bankers Association, has applied to the High Court for a judicial review of the PPI rules, which were set to come in on 1 December. These are rules produced by the FSA (Financial Services Authority) in relation to payment protection insurance and more importantly an industry wide review of past arrangements even if there has been no complaint from the underlying customer.
Many banks are concerned that the proposed changes in PPI, which effectively allow consumers a cooling off period and the ability to shop around for their payment protection insurance, will impact upon their income. There were suggestions that some PPI arrangements were basically duplicating other protection which many consumers already had in place, something which may well have affected their long-term value for consumers. The British Bankers Association is challenging the legal standing of the proposed rule changes and indeed looking for clarity with regards to potential compensation in the future.
This is a situation which has been ongoing for some time now and one which will eventually be settled in the High Court. This is definitely something of a battle royal with the FSA on one side and the British Bankers Association on the other.
Share this..
Related stories
Insurer issues car headlight warning
Four in five drivers do not know the Highway Code's guidelines on using headlights, esure said today.According to the insurer, around one million motorists have also suffered either a road accident or a near-miss due to not turning their lights on.Analysis from esure also shows that "more and more" local authorities are turning off some of their streetlights at night in order to save money - a tre...
Read More'Life insurance is vital for the self-employed'
Life insurance is crucial for those who are self-employed and those who are considering going into business for themselves, life insurance expert has claimed. According to Nick Kirwan of the Association of British Insurers (ABI), Britons are "hugely underinsured for life cover" with up to one in three people having no life insurance. The ABI also estimates that a further one in three have failed t...
Read MoreHomeowners advised to guard gardens
Homeowners need to review their garden security as summer fast approaches, Sainsbury's Bank has advised.Research from the financial services provider has revealed that summer sees an increase in the number of home insurance claims for stolen garden items.The average home insurance claim for garden theft is £291, with opportunistic thieves targeting furniture and expensive toys. Neil Laird, Sainsb...
Read MoreTravel insurance – what is the best type of insurance for you?
Going on holiday can be very stressful to plan, especially if you have a family. As well as arranging passports, online check-ins, remembering tickets and changing your money, it can be hard to remember everything you need to travel. One thing really important not to forget is your travel insurance.
What is travel insurance?
When travelling overseas it is really important...
Read MoreInsurers forced to be clearer over premiums
10/07/2014 Insurance companies will soon be expected to provide clearer information on renewal quotes, as the Financial Conduct Authority (FCA) prepares to draw up new rules for the industry. The new regulations are likely to include measures to force insurance companies to provide extra details when a customer comes to renew their policy. It’s claimed that customers will now have to b...
Read More