The British Bankers’ Association will not be appealing the High Court’s decision rejecting the BBA’s call for a judicial review of payment protection insurance complaint measures set out by the FSA and the Financial Ombudsman Service.
The BBA had until tomorrow to lodge an appeal with the High Court.
The BBA says: “The BBA on behalf of its members judicially reviewed the FSA and the FOS regarding the retrospective elements in the proposed FSA rules for handling PPI complaints. The judgment was handed down on April 20 and found in favour of FSA and the FOS. The BBA was given until May 10 to appeal.
“In the interest of providing certainty for their customers, the banks and the BBA have decided that they do not intend to appeal. We continue to believe that there are matters of important principle which we will be taking forward in other ways with the authorities.”
The BBA launched its judicial review in October, challenging the FSA’s PPI redress measures set out in a policy statement in August which called for an overhaul in the way firms deal with PPI complaints.
The trade body argued the measures were based on principles that are not actionable in law.
The case was heard by the High Court in January, and in April the court ruled in favour of the FSA and the FOS.
Lloyds has made a £3.2bn provision to cover the cost of PPI-related compensation and associated admin costs. The announcement by Lloyds was widely hailed by consumer groups as a victory for consumers who had been mis-sold PPI.
Barclays announced this morning that it would be setting aside £1bn for PPI redress.