High Court Decision on Payment Protection Insurance (PPI)

British and Irish Legal Information Institute

April 20, 2011

The British Bankers' Association ("BBA") has failed in its attempt to obtain a judicial review of the FSA regulations governing the sales of payment protection insurance ("PPI"); a type of loan insurance which covers debt repayments if a borrower is unable to work due to an accident, illness or period of unemployment.

In October 2010, British banks, represented by the BBA, had requested a judicial review to examine changes in the way banks were permitted to sell loan cover. British banks claimed that the new FSA rules were being used retrospectively to assess complaints for prior PPI policies.

The concerned banks are considering whether to appeal the decision.