Customers may eventually bear brunt of PPI compensation
The decision by the banking sector not to appeal against the recent payment protection insurance (PPI) ruling may not be all good news for consumers it has emerged.
Accountancy firm BDO has warned that consumers may end up bearing the brunt of the compensation cost via other charges that banks may begin to levy.
Tim Kirk, partner and national head of financial services at BDO, commented: “The withdrawal of banks and the British Bankers’ Association from their legal challenge to the Financial Services Authority’s stance on PPI complaints, and provisioning being made for compensation, indicates an acceptance that the banks were losing the battle in the courts
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