0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Forgotten your password?

More trouble for the banks?

27 January 2011

A Judicial Review challenge is currently underway in the High Court by the British Banking Association (BBA). They claim that the Financial Services Association (FSA) and Financial Ombudsman Service have made an ‘error of law’ in retrospectively applying new, more stringent, rules to the sale of Payment Protection Insurance (PPI).

Should the BBA be unsuccessful, this could lead to a compensation pay out to customers of up to £3.2 billion, a figure based on just 20% of policyholders making a claim. In addition, at least 35 insurance firms could fold, costing £35 million to the FSA’s own compensation scheme.

An unsuccessful challenge may also set a precedent which could affect all products regulated by the FSA.

Consumers may receive compensation retrospectively, however with such high payout costs to the already hard hit banks; they may potentially face increased service charges as the banks try to recoup the monies lost.

Related opinions

Flexible working, childcare and indirect sex discrimination – important reminder

The courts have long recognised that, on a societal level, women bear a greater burden of childcare responsibilities than men which can make it more difficult for women to comply with employer requirements for flexible working (known as the ‘childcare disparity’).

View blog

Updated National Crime Agency (NCA) guidance: Shoot for better quality suspicious activity reports (SARs)

The National Crime Agency (NCA) published an updated guidance note for anti-money laundering supervisors targeted at improving the quality of suspicious activity reports (SARs) to make the best possible use of SARs and to minimise unnecessary delays, particularly where a defence against money laundering (DAML) has been sought.

View blog

Credit broking: know your permissions

To operate lawfully, firms that broker credit to consumers by way of business must be registered with and authorised and regulated by the Financial Conduct Authority (FCA).

View blog

SFO fail to secure individual criminal convictions following Deferred Prosecution Agreement

On 16 July 2019 the Serious Fraud Office released details of the Deferred Prosecution Agreement reached with Sarclad Ltd in July 2016.

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up