3rd February 2016

Statement of Principles for Letters of Authority (LoA) for PPI Complaints

We are pleased to announce the introduction of a Statement of Principles which sets the standard for CMCs when taking Letters of Authority (authority) from customers, to allow them to handle PPI mis-selling complaints on their behalf.

The Principles set out the essential content in an authority that will enable customers’ complaints to be handled efficiently, at the same time giving the customer a clear understanding of the nature of the authority being given, together with details of the PPI provider, product(s) and type of account(s). A number of the larger retail banks will now be embarking on system changes to implement the principles by April 2016.

Members of the BBA have worked principally with the PFCA, the CMRU and other CMCs to shape the Principles for PPI Letters of Authority (LoA). Current PFCA members have already signed up to the principles and the PFCA will be looking to make them a condition of membership.

A BBA spokesperson said “We are very pleased that we have reached agreement on these principles. A valid letter of authority is key for any CMC to ensuring they can act on behalf of a customer in relation to a specific complaint. Customers will benefit with a better understanding of the permission that they are providing, whilst lenders and claims management companies will be able to review complaints more efficiently.”

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PRINCIPLES FOR LETTERS OF AUTHORITY FOR PPI Complaints

Customer/ Representative Details
  • The full CMC name and contact details (including CRM Registered Number and Reference);
  • Customer details to include;
  • First Name(s), i.e. including middle names, if any
  • Surname(s), also stating maiden or other names used at the point of sale
  • Address including any known previous addresses at point of sale
  • Postcode
  • Date of Birth
Authority to review potential grounds for a complaint [excluding Data Subject Access Requests]
  • Lender’s brand, product(s) and type of account(s) held in respect of which the CMC has explicit authority to review in relation to an expression of dissatisfaction
Authority to raise a complaint
  • Lender’s brand, product(s) and type of account(s) held in respect of which the CMC has explicit authority to act upon in relation to a complaint AND the following customer declaration:

I understand that, in addition to the present Letter of Authority I will need to provide further information when raising an expression of dis-satisfaction to the Lender, about the underlying product(s), service(s) and where known, specific account number(s) being complained about. Doing so will enable the Lender to assess and determine the complaint as quickly and as effectively as possible.

Validity
  • To be valid, the date of the customer’s signature on the LOA must be no more than 6 months prior to the date of receipt by the lender.
  • Expiration of a LoA occurs at the expiration of FOS rights (6 months from the issue of the final decision by the lender), or at conclusion of the FOS investigation if the case has been referred to FOS following the issue of final decision by the lender.
Signatures
  • Signatures of all account holders
  • Date of signature(s)
  • It must be possible to authenticate and verify all dates and signatures
The authority – relevant clauses should cover
  • Prevailing authority: when in receipt of multiple valid LoAs from different CMCs, lenders will deal directly with the customer until the customer has explicitly confirmed which CMC they wish to deal with their complaint. Lenders will notify all CMCs involved accordingly.
Amendments and Alterations
  • All amendments and alterations must be signed in full by the customer
Re-Opened Complaints
  • CMCs must obtain a new letter of authority when seeking to re-open a complaint where redress has been paid

Annexes to the Principles provide details of:

  • a list of policies indicating the point at which the original LoA document is required by each lender(pre submission enquiry where there is one, or complaint);
  • a list of policies indicating whether single or all signatures are required on the LoA in order to raise complaints for joint accounts.

Annex 1: BBA, PFCA members and other CMCs who have voluntarily signed up to the Principles:

 

BBA Members

  • BAML
  • Barclays
  • Barclaycard
  • Capital One
  • Clydesdale
  • HSBC
  • LBG
  • Nationwide Building Society
  • RBS
  • Sainsbury’s
  • Tesco Bank
  • The Co-operative Bank
PFCA Members

  • Gladstone Brookes (CRM 7004)
  • Investor Compensation (CRM 28889)
  • EMCAS (CRM 1768)
  • Synergy Financial Solutions (CRM 19138)
  • missold2u (CRM 31800)
  • Money Management Team (CRM 34681)

Association of Claims Companies (ACC) members

  • We Fight any Claim – CRM14824
  • Brunel Franklin – CRM13067
  • Fair Trade Practice – CRM23387

Annex 2: Brands which are captured by each lender group:

 

BAML

  • MBNA

Barclays

Secured Loan brands

  • Barclays
  • FirstPlus
  • Fair & Square

Business Banking

  • Barclays
  • Mercantile Marine Finance
  • Mercantile Credit

Credit Card affinities

  • Barclays

Mortgages

  • Barclays
  • Woolwich

Barclay Card (Credit card affinities)

  • Barclaycard
  • Argos/Home Retail Group
  • Thomas Cook
  • IHG (International Hotel Group)
  • Hilton Hotels Priority Rewards card
  • White-labelled – BHS
  • Egg
  • Goldfish
  • Morgan Stanely
  • Littlewoods

Capital One

  • Capital One
  • Luma

Clydesdale

  • Clydesdale Bank
  • Yorkshire Bank

Halifax

  • Halifax
  • BOS

HSBC

  • First Direct
  • M&S bank
  • HFC (ex-HFC legacy policies)
  • John Lewis

Lloyds

  • Lloyds TSB
  • C&G
LBG

  • Aqua
  • Britannia Personal lending
  • Capital Bank
  • AA
  • Home Shopping personal finance
  • Intelligent Finance
  • Leeds Building Society
  • Marbles
  • Sainsbury’s bank
  • The mortgage business
  • Scottish Widows (not included in pre sub process)
  • Birmingham & Midshires (not included in pre sub process)
  • Blackhorse  (not included in pre sub)

Nationwide Building Society

  • Includes all Regional Brands

National Westminster Bank PLC

  • NatWest

The Royal Bank of Scotland PLC

  • Royal Bank of Scotland
  • Child & Co
  • Direct Line
  • Churchill
  • First Active
  • Style
  • Shell
  • The One Account
  • MINT
  • Lombard Direct

Ulster Bank Limited

  • Ulster Bank

Coutts & Co

  • Coutts

Adam & Company PLC

  • Adam & Company

Lombard North Central PLC

  • Lombard

Sainsbury’s Bank

Tesco Bank

The Co-operative Bank

  • The Co-operative Bank
  • smile
  • The Britannia Building Society

Annex 3: List of policies indicating the point at which the original LoA document is required by each lender:

 

 

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

BAML

Scanned copy sent electronically by the CMC Scanned copy sent electronically by the CMC

Barclays

Scanned copy sent electronically by the CMC

Original

Barclay Card

Scanned copy sent electronically by the CMC

Original

Capital One

Scanned copy or original

Scanned copy or original

Clydesdale

Original

Copy

HSBC

Scanned copy or original

Original

LBG

Scanned copy or original Scanned copy or original

Nationwide

Scanned copy sent electronically by the CMC Original, paper copy or scanned copy

RBS

Copy only accepted Copy only accepted

The Co-operative Bank

Scanned copy Original

 

Number of signatures required for Joint Accounts

Barclays / Barclaycard

JOINT ACCOUNTS

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

Single signature

All signatures

 

RBS – JOINT ACCOUNTS

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

Single signature

  • if only one party is enquiring
  • if only one party is complaining

All signatures

  • signatures of all parties enquiring
  • signatures of all parties complaining

 

Clydesdale – JOINT ACCOUNTS

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

Single signature

All signatures

 

HSBC – JOINT ACCOUNTS

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

Single signature

  • if only one party is enquiring
  • if only one party is complaining

All signatures

  • signatures of all parties enquiring
  • signatures of all parties complaining

 

Capital One – JOINT ACCOUNTS

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

Single signature

 

Nationwide – JOINT ACCOUNTS

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

Single signature

✘ (unless all parties signatures are unavailable)

All signatures

 

The Co-operative Bank

PRE SUBMISSION ENQUIRY

COMPLAINT SUBMISSION

Single signature

All signatures

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