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Banks put PPI claims on ice

UK banks are putting claims by customers over payment protection insurance mis-selling on ice, according to law firm Ultimate Law.

The firm said its clients had received a flurry of letters from their banks saying they are suspending investigations into PPI "mis-selling". The move follows the British Bankers' Association's decision to ask for a judicial review of the FSA's ultimatum to banks over dealing with PPI claims.

It has been condemned by consumer groups as a delaying tactic; more than 100,000 mis-selling claims have been put on ice. "It looks as if [the banks] are employing their usual bully-boy tactics," said Daniella Lipszyc of Ultimate Law. "This could drag on for months." She said the judicial review is not expected to start until January, and is "likely to last until Easter".