Ombudsman signals higher levies as PPI claims soar

The Financial Ombudsman Service has hinted at higher levies for the industry as a result of another spike in payment protection insurance (PPI) claims.

In its latest industry newsletter, chief executive Natalie Ceeney detailed how the organisation had seen the number of PPI complaints climb from less than 1,000 per week to over 3,000 in recent months.

Describing the numbers as "pretty unsettling", she explained how the issue had been raised in meetings with senior industry representatives ahead of the formal consultation on its plan and budget early in the new year.

"If all this means we'll need significantly more resource and capacity to handle ever-higher numbers of PPI complaints, then we need - now - to build this into the plan and budget we'll be consulting on in the new year," she added.

The spike in PPI claims was partly blamed on the part played by claims management companies, who now represent consumers in over 80% of the cases referred to the ombudsman.

The banks and other financial businesses involved have already received a million PPI complaints this year, and the Ombudsman is predicting a similar number next year.