FSA gives clear set of deadlines to banks for dealing with mis-sold PPI Claims
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United Kingdom (PRWEB UK) 6 July 2011
The Financial Services Authority has given a stay of execution to 3 of Britain's largest banks to handle complaints over mis-sold payment protection insurance (PPI) claims and should hopefully be the last chance they receive, experts said recently.
The granting of temporary reprieves for Barclays, HSBC, RBS/NatWest and Lloyd's Banking Group by the Financial Services Authority, to handle their backlog of complaints within strict deadlines is according to Bryan Knott, partner at law firm Simpson Millar, their final opportunity to appease long suffering consumers.
Bryan said: "People have already been left waiting for months to find out if the bank which mis-sold them payment protection insurance would pay them back. It is important to remind the banks now that the FSA has given them a clear set of deadlines by which time they have to deal with each of these thousands of PPI claim complaints. The problem only arose because they themselves postponed dealing with the PPI claims and instead put thousands of mis-sold cases on hold while pursuing a judicial review."
On 13 June the FSA announced that 3 of the banks; Barclays, RBS/NatWest and Lloyd's Banking Group would be subject to the new complaints handling conditions, with HSBC being granted the same privilege shortly after.
Under the FSA's procedures, PPI complaints still with those banks but put on hold during the judicial review must receive a decision by the end of August; PPI complaints received after the conclusion of judicial review but on or before the 31 August will be responded to within 16 weeks; and PPI complaints received on or after 1 September and before 31 December 2011 will be responded to within 12 weeks.
Strict conditions have been imposed on the temporary time extensions; the firms with the temporary time extension will have to: keep PPI complainants and their customers fully informed; and provide the FSA with regular reports on compliance.
The FSA said it expects all complaints regarding PPI claims handling to return to the requisite eight-week standard by 1 January 2012 at the latest.
"Processing a complaint for a mis-sold PPI policy is fairly simple and should therefore be dealt with swiftly," continued Bryan. "It clearly isn't an issue that will go away by itself and consumers deserve fair treatment, not poor excuses and stalling tactics. I hope that the Financial Ombudsman is serious when it promises to work closely with the banks concerned to ensure that these backlogs of complaints are tackled promptly and effectively."
Simpson Millar LLP are experts at dealing with mis-sold PPI claims and have helped many people reclaim their money. Simpson Millar LLP is a national law firm who have been successfully acting for clients for over 150 years. They have 10 offices throughout England and Wales and are regulated by the Solicitors Regulation Authority (Registration No: 424940).