BBA''s PPI measures challenge dismissed from court

A legal challenge from the British Bankers' Association (BBA) and Nemo Personal Finance over new payment protection insurance (PPI) measures has been dismissed by the High Court.

The decision has been welcomed by the Financial Services Authority (FSA), which said it hoped the news would spell the beginning of the end for poor complaints handling.

It also noted that it was optimistic that customers who voiced concerns would also be treated in a way that demonstrated "dramatic improvement".

Since the watchdog took over the job of regulating those with finance jobs in London and across the UK who work at institutions offering PPI - in 2005 - it estimates it has received 1.5 million complaints concerning the cover product.

It adds that on average, financial services providers have rejected 60 per cent of the grievances they have logged.

Yet against this, the FSA claims the "vast majority" of complaints that are referred to the Financial Ombudsman Service find in the favour of the customer.

Meanwhile, the BBA revealed it was "disappointed" with the judgement.

It stated: "Whilst the UK banking industry has to date implemented every reform on PPI sales and complaints handling required by the regulators, the additional requirements in the policy statement effectively apply new standards to past sales, which we believe go beyond the rules and regulatory requirements which were developed by the regulator over time."