The British Bankers’ Association has defended its decision to bring the judicial review over payment protection insurance complaint measures, saying its members asked for legal clarity.
Last October, the BBA launched a judicial review challenging the legality of the package of measures that the FSA outlined in August to overhaul the way PPI complaints are dealt with.
The trade body argued that current rules were being applied retrospectively and also criticised guidance published on the Financial Omb-udsman Service’s website based on the FSA’s rules.
The case was heard at the High Court in January and in April the court found in favour of the regulator and the FOS.
The BBA had until May 10 to lodge an appeal but following the withdrawal of support from Lloyds Banking Group and Barclays, the trade body decided not to do so.
A spokesman for the BBA says: “The issue of the PPI package of measures was raised by the banks in one of our regular committee meetings. They signalled to us that they wanted some legal clarity on this and asked us to take it forward on their behalf. The banks themselves then decided the direction they wanted to go in.”
The BBA will continue to pursue the issue of retrospective regulation with the FSA.
Evolve Financial Planning director Jason Witcombe says: “The banks know in their heart of hearts whether they have done the wrong thing by their clients or not and now they need to draw a line under it. The PPI scandal has been a complete shambles and has not done the banks any favours.”