FOS: 'Real challenge' with PPI still to come

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The Financial Ombudsman Service (FOS) has predicted the full force of the payment protection insurance (PPI) mis-selling saga may not be felt until the second half of the financial year.

In FOS's latest newsletter, Tony Boorman, the principal ombudsman and decisions director, detailed how PPI complaints dominated its activities in Q1 of 2011/2012, when banks were still stalling as they awaited the outcome of a judicial review and the possibility of an appeal. However, he added the "real challenge" and "continuing uncertainty" would come in the second half of the financial year. "By then, 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 com...

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