NEWSFLASH The Financial Services Authority (FSA) has taken the unprecedented step of agreeing new guidelines for PPI mis-selling. The new guidelines have been agreed with the three largest banking...
NEWSFLASH The Financial Services Authority (FSA) has taken the unprecedented step of agreeing new guidelines for PPI mis-selling. The new guidelines have been agreed with the three largest banking groups, Lloyds TSB, Barclays and RBS. The guidelines allow these banks additional time to deal with the massive backlogs of PPI mis-selling cases. In particular they allow the banks until the 31st August 2011 to deal with ALL the cases the banks placed on hold pending the judicial review initiated by the banking association. Craig Lowther, managing director of Money Boomerang Ltd issued a cautious welcome stating “any steps being taken to reduce the immense backlog of cases these banks have built up over the last 6 months are welcome. However if the majority of these cases are rejected and not settled in the customers favour it will not reduce the workload on the FOS who have seen a knock on effect from all these cases being referred to the FOS once the banks have placed them on hold.” The guidelines allow the banks additional time to deal with new complaints until January 2012 when the time limits for investigating PPI complaints will go from the new limit of 16 weeks back to the old limit of 8 weeks. Mr Lowther added “if the extended time limits allow the banks to investigate and settle complaints without the need to refer them to the FOS it will significantly ease the burden on the FOS. 

Money Boomerang Ltd is regulated by the Ministry of Justice in respect of regulated claims management activities. Its registration is recorded on www.claimsregulation.gov.uk