In early 2016, the Alliance of Claims Companies was invited to join the BBA's CMC Liaison Group. The group comprises of members of the BBA - high street banks and others, and it is co-chaired by the BBA and the PFCA. The issue that the group first addressed was to agree a statement of principles for letters of authority (LoA) for PPI complaints.

The CMC Liaison Group has been established by the BBA in order to:

  • Establish and maintain a regular exchange of information on best practice between BBA members, Professional Financial Claims Association (PFCA) members, Alliance of Claims Companies (ACC) members, and other CMCs.
  • Raise to the attention of interested parties issues or developments which require input or analysis relating to but not limited to Letters of Authority, pre-submission enquiries, individual voluntary arrangements, complaints points, etc.
  • Discuss and wherever possible reach agreement on practices affecting BBA member-CMC relationships.

The ACC is delighted to take a full part in this group, as it helps with our aim of aiding consumer confidence in all CMCs, and we want to help shape the landscape to allow consumer claims for mis-sold PPI to become an easier process for consumers, banks, and CMCs going forward.

Following on from those discussions, the BBA said

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

The ACC has made it one of their Guiding Principles for membership that members must adhere to these principles.

For a full set of FAQs on the new principles please click here.