In a judgment handed down on 20 April 2011, the High Court dismissed a judicial review application made by the British Bankers Association (BBA) against complaints handling rules relating to the mis-selling of payment protection insurance (PPI). Please click here to view a copy of the judgment.
The ruling has upheld the FSA's Policy Statement 10/12, which introduced stricter requirements on the handling of PPI complaints by banks. There have been over 1.5 million complaints made about PPI since the FSA took over regulation of it in 2005. It is estimated that full compliance with the measures will cost the industry between £1bn and £3bn, largely to be incurred in the payment of redress to consumers. Please click here to see a copy of the FSA Policy Statement 10/12.
The BBA is currently considering its next steps, including the possibility of applying for an appeal of the judgment.