January 2012

Happy New Year to all our customers.

August 2011

The deadline for banks to resolve payment protection insurance (PPI) complaints has arrived. During a judicial review in June, the Financial Services Authority extended the deadline for Barclays, Lloyds Banking Group and RBS to resolve the complaints until 31 August.

April 2011

Update on the BBA Judicial Review

Today, April 20 2011, the British Banker's Association, representing the UK's banks, have lost an attempt to thwart new regulations on how they should sell payment protection insurance (PPI) in the High Court. Crucially, the rules also lay down how the banks should deal with past cases of potential mis-selling of PPI, which could lead to an extra compensation bill running into billions of pounds.

The High Court heard a judicial review brought principally by the BBA against the recently updated rules of the Financial Services Authority (FSA) and the Financial Ombudsman Service (FOS). The judges rejected the BBA's arguments that the rules were unfair because they were retrospective. The FSA and FOS continue to advise the lenders to settle PPI claims in accordance with their rules and guidelines.

So, what happens now?

The BBA has 21 days in which to decide to appeal. In the meantime individual banks are still putting on hold many of the new PPI complaints that are being lodged with them and are likely to do nothing further with existing claims that are currently "on hold". If an appeal goes ahead, then thousands of new complaints will continue to pile up.

Blue Sky Claims will continue to provide updates as they happen.