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You can find the current article at its original source at http://www.guardian.co.uk/money/2013/may/28/ppi-claims-shareholders
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| Version 1 | Version 2 |
|---|---|
| Rising PPI claims are bad news for shareholders | Rising PPI claims are bad news for shareholders |
| (4 months later) | |
| The PPI catastrophe rolls on. Every mobile phone in the UK has already been blasted with countless texts telling people to grab a share of the payouts (however spuriously), so you might imagine every possible claim has already been sent in. | The PPI catastrophe rolls on. Every mobile phone in the UK has already been blasted with countless texts telling people to grab a share of the payouts (however spuriously), so you might imagine every possible claim has already been sent in. |
| But figures from the Financial Ombudsman show that claim numbers have doubled to 379,000 over the past year, and they are by no means all from the ambulance-chasing claims companies. | But figures from the Financial Ombudsman show that claim numbers have doubled to 379,000 over the past year, and they are by no means all from the ambulance-chasing claims companies. |
| The banks have gone from denial (rejecting claims and rightly being fined by the FSA) to acceptance (setting up claims departments staffed by thousands, making £14bn in provisions, moaning about false claims) but are now moving back to fight mode. | The banks have gone from denial (rejecting claims and rightly being fined by the FSA) to acceptance (setting up claims departments staffed by thousands, making £14bn in provisions, moaning about false claims) but are now moving back to fight mode. |
| Last year, the ombudsman upheld only 70% of PPI complaints, down sharply from 84% the year before. Indeed, uphold rates in favour of consumers are falling across the board at the ombudsman, dropping below 50% for the first time. | Last year, the ombudsman upheld only 70% of PPI complaints, down sharply from 84% the year before. Indeed, uphold rates in favour of consumers are falling across the board at the ombudsman, dropping below 50% for the first time. |
| Which? magazine reckons it indicates the banks are still dragging their heels on complaints, and they have a point. | Which? magazine reckons it indicates the banks are still dragging their heels on complaints, and they have a point. |
| Others, irritated by junk texts from the claims companies, may even sympathise with the banks. | Others, irritated by junk texts from the claims companies, may even sympathise with the banks. |
| But it is unmitigated bad news for bank shareholders. Given the still-rising claims figures, the chances of a write-back of those gigantic provisions is unlikely – and £14bn may yet prove to be not nearly enough to cover the most monumental mis-selling in banking history. | But it is unmitigated bad news for bank shareholders. Given the still-rising claims figures, the chances of a write-back of those gigantic provisions is unlikely – and £14bn may yet prove to be not nearly enough to cover the most monumental mis-selling in banking history. |