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PPI Reclaims and the Judicial Review Court Ruling

Since last year Britain’s banks have had to adopt new guidelines set out by the FSA in regards to the sale of PPI. This has allowed over the last year thousands of cases to be reopened. So what does it mean to you?

What was the PPI judicial review?

The British Bankers Association that represents Britain’s banks looked for a review in late 2010 early 2011 against the Financial Services Authority (FSA) and Financial Ombudsman Service (FOS) after rules were made in December of 2010 to stop PPI mis-selling. These new rules regarding selling PPI required providers to explain the key features more thoroughly rather than assuming the documents would be read.

Why are the banks unhappy with the PPI judicial review?

The banks claim that to apply the standard retrospectively for all PPI reclaim cases is unfair, in other words to policies before the review came in. The banks feel it is unfair that a customer can petitions for PPI reclaims if the bank is unable provide evidence it was sold correctly even if the banks were not required to follow the new procedures for PPI selling at the time.

What evidence is there for mis-selling if I want to make PPI reclaims?

Studies have found that the most common methods of PPI mis-selling have include them being sold to those who could never claim on a PPI policy and those customers who felt pressurised or were even forced to take it during a loan or credit card application.

PPI reclaims are currently the single largest complaint received by the FOS who are now recieveing between 5000 and 10000 PPI reclaim complaints per week.  3 out of 4 PPI reclaims being taken to the FOS are settled in favour of the customer.

Have the new rules caused more PPI reclaim compensation to be paid out?

The new rules have of course led to a surge of PPI reclaim cases being settled earlier as well as the banks becoming more prepared to pay out on PPI reclaims. A key indicator of this is the announced total of around £6bn or more that has been annexed by major banks to repay mis-sold PPI polices. This figure is still rising.

So how do I start my PPI reclaims?

You can do one of two things, you can of course attempt to reclaim PPI yourself or alternatively you can use a Claims Management Company on a no win no fee* basis to put your reclaim case together and work on your behalf.

To start a PPI reclaim today click here