Banks are stalling on customers' PPI claims, creating unnecessary backlogs and delays, critics said yesterday.

A claims management company, Emcas, has said that banks are rejecting around a third of claims from customers. However, the Financial Ombudsman Service (FOS), which deals with complaints rejected by the banks, is upholding the majority of PPI claims, suggesting that the banks are rejecting legitimate claims in the hope that customers will not take the process further. "If claims were being resolved in the first instance, it would be better for everyone concerned," a spokesman for FOS said yesterday. The development comes after it emerged last week that PPI (payment protection insurance) is turning out to be the biggest mis-selling scandal in British history. Millions of people were pushed policies when they bought credit cards, loans and other forms of credit. They hoped this would protect them if they lost their jobs or were unable to work through illness....Read more here