The British Bankers’ Association (BBA) has introduced a Statement of Principles setting the essential content for a letter of authority (LoA) that claims management companies (CMCs) should obtain from customers when acting in relation to their PPI complaints.

The aim of the Principles is to enable customers’ complaints to be handled more efficiently, as well as give customers a clear understanding of the permission of authority being given. These Principles include:

  • Customer/Representative Details.
  • Authority to review potential grounds for a complaint.
  • Authority to raise a complaint.
  • Validity.
  • Amendments and alterations.
  • Re-opened complaints.

Annexes to the Principles also provide:

  • A list of policies indicating when the LoA is required.
  • A list of policies indicating whether single or all signatures are required on a LoA for complaints from joint accounts.

Members of BBA and the Professional Financial Claims Association (PFCA) members have voluntarily signed up to the Principles, and the PCFA are looking at making them a condition of membership.