Banks ignored the problem for too long, says Ceeney

Financial Ombudsman Service (FOS) chief executive Natalie Ceeney (pictured) has said that banks should take the blame for the wave of exaggerated payment protection insurance (PPI) claims.

Banks have tried to put the blame for the level of PPI claims on claims management companies (CMCs) encouraging spurious claims, according to City AM.

But Ceeney told a Treasury Select Committee yesterday that the banks had to accept that they created the PPI problem and then tried to duck their responsibilities for years, leading to a growth in CMCs looking to cash in.

Earlier this month, however, Ceeney said she did not condone the spurious claims brought by CMCs.

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