Payment protection insurance
Further to our news item on 'Payment protection insurance: the ‘root cause’ of concern for providers' the banks have now confirmed that they do not intend appealing the decision therefore the Courts previous ruling will stand.
Those ‘firms’ involved in selling PPI insurance must now carry out a root cause review and identify systemic failings. If found, the FSA obliges those firms to contact their clients and pay compensation. This is clearly unwelcome news and the estimated cost to the banking profession is now at £9bn. It still remains the case however that the identification of a systemic failing needs to be identified to crystallise the obligation to pay compensation.
This article was written by Beale and Company Solicitors LLP and has been reproduced with their permission. Beale and Company Solicitors are a niche commercial law firm specialising in providing advice to the professions, insurance and construction industries. For more information please visit www.beale-law.com.