Some debt purchasers could see their businesses crippled if agreement is not reached on how the mis-sold Payment Protection Plan (PPI) tranches of debt portfolios are resolved.

Leigh Berkley (pictured) of the Debt Buyers and Sellers Group (DBSG) is warning that in extreme cases some firms could close as a result and is calling for a reform of the way banks buy back any mis-sold PPI portion of debts from debt buyers.

According to Berkley the commonly adopted system of buy back has worked while the volume of PPI complaints has remained low, but is becoming unsustainable.

In total there have been around 200,000 complaints in relation to PPI made to the Financial Ombudsman Service (FOS). Half of those have been over the last financial year, but the rate of complaints has rocketed to around 5,000 per....Read more on this story: CLICK HERE