British Bankers Association has launched fight against controversial proposals
The FSA has insisted it will press ahead with new rules for handling payment protection insurance (PPI) mis-selling complaints, despite a legal challenge by the British Bankers Association (BBA).
In a consultation document published in August, the FSA updated the rules to bring them in line with its business conduct guidelines. This included controversial proposals that mis-selling will have occurred if “reasonable care” has not been taken to ensure policies are “affordable in light of customers’ income and outgoings”.
The FSA said it aimed to start implementing the new rules on 1 December. The BBA hopes the case will be heard by early 2011.