The Financial Ombudsman Service says continuing uncertainty around PPI will not properly hit banks until the second half of the financial year.
In yesterday’s FOS newsletter, principal ombudsman Toni Boorman says he believes the “real challenge” and “continuing uncertainty” around PPI will not properly hit banks until the second half of the financial year.
Boorman (pictured) says that after the High Court ruling in April, PPI complaints dominated activities in the first quarter, and that it is “difficult” to make predictions on whether complaint volumes have yet peaked.
“By the second half of the year, banks and others will be dealing with cases they received after the judicial review, where there is no dispute that they should be following the ombudsman’s approach and the FSA’s complaints-handling guidance,” he said.
“Banks and others are already reporting record numbers of new complaints and it will be some time before we see the impact of those on our figures.”