Modification by consent of certain DISP rules
Which firms does this apply to?
We are making this general modification by consent (the 2008 waiver) available only to providers of personal current accounts with overdraft facilities (the firms).
Background to the waiver
We have decided to offer the firms a modification of certain rules set out in the Dispute Resolution manual (DISP) in the format contained in the 2008 waiver direction. This follows on from the 2007 waiver, which ended on 26 July 2008. The 2008 direction was due to expire on 26 January 2009; we have extended the expiry date to 26 July 2009.
2007 waiver direction [PDF]
2008 waiver direction - monthly reporting* [PDF]
2008 waiver direction - quarterly reporting* [PDF]
In summary, the main effect of the 2008 waiver is to continue the suspension of certain time limits in DISP for the duration of the waiver as they apply to certain types of complaints. These are complaints received by firms about the level and fairness of charges applied to the accounts of customers who seek to make payments for which they do not have available funds in the account and whose overdrafts have not been agreed by the firm in advance. There is further information in our press release of 22 January 2009
* There are two versions of the 2008 waiver - what is the difference?
The versions are the same, except the 10 largest firms (whom we have notified) are required to report management information to us monthly (see Condition 13 (10) & Annex 1 in the waiver direction) – while the smaller firms are required to report quarterly.
What does this mean for firms?
Firms will not be required to resolve complaints about certain unauthorised overdrafts charges within the time limits set out in our rules while the waiver is in place. The Financial Ombudsman Service has adopted a similar approach and county courts have put cases referred to them on hold.
What does this mean for consumers?
The waiver contains consumer protection measures to ensure complainants are not disadvantaged by the delay in dealing with their complaints. To take advantage of the 2008 waiver (which now expires on 26 July 2009) the firms must comply with these measures. We can revoke the waiver at any time if we think it is no longer appropriate – for example, if it no longer provides the consumer protection for which it was intended, or a firm fails to comply with its terms.
We will review the continued need for a waiver in light of prevailing circumstances in July 2009.
At suitable stages we, and the firms, will update consumers on the progress towards establishing certainty over the fairness of these charges. Consumers can find out more on the Moneymadeclear product news page.
How do firms take this forward?
If your firm wishes to take advantage of the 2008 waiver, please email centralwaiversteam@fsa.gov.uk:
Or write to:
The Waivers Team
The Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
For us to make the 2008 waiver available, please give us the full legal names of all the entities within your group it should apply to. We will write to tell you whether we will make the 2008 waiver available to your firm and we will publish each waiver on our website.
Waivers update
