Banks will be forced to pay up to £3 billion compensation over the mis-selling of payment protection insurance after a High Court judge today rejected a challenge from the British Bankers' Association against an earlier ruling.Last year, after a stream of customer complaints over PPI, including some who weren't even aware they had been signed up to the policies, the Financial Services Authority introduced rules to stop mis-selling, including making it clear cover is optional. But the BBA launched a High Court challenge against the FSA, claiming its rules were unfair because they would be applied retrospectively.
The judicial review today ruled against that case, saying the banks must accept compensation claims from customers who were sold PPI policies before the new rules were introduced at the end of last year.
The FSA said it "signalled the end of years of poor complaint handling and will trigger a dramatic improvement in the way customers are treated".
Oliver Morgans, financial services expert at Consumer Focus, said PPI represented "everything that is wrong with the banking sector".
He said: "This is a huge win for millions of people. It has taken years of the banks being dragged kicking and screaming, but they are finally being forced to do the right thing by their customers."
Report abuse I am pleased the British Bankers Assoc lost their appeal. I have never bought an insurance product from a bank as I don't think they are qualified to act as insurance advisors. Stick to banking, get that right first, then perhaos they could develop insurance in a proffessional manner.
Report abuse Fortunately missed yesterday's Julilee line disruption, but arrived at Waterloo this morning to find line suspended yet again south of Willesden Greeen. That's bad enough but why did no one at London Underground think to get Metropolitan Line trains to stop at Willseden Green & collect passengers to from Jubiliee line? Obviously, that requires joined up thinking and some common sense!
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