Banks may need to re-deploy key staff from their mortgage departments to handle mis-sold payment protection insurance claims, according to a customer complaints handling expert.
On April 20 the High Court ruled that banks must compensate borrowers who were mis-sold PPI, which could cost a total of £4.5bn.
Mark Chambers, head of solutions consulting at CDC Software, which is working with financial institutions on PPI claims, says banks are reportedly looking to take on 6,000 staff as well as redistribute existing employees to cope with the high volume of claims expected.
He says: “Banks face a huge challenge and may be overwhelmed by the number of cases they receive.
“They face huge administration costs and need staff who understand the processes and products involved. This means some front line mortgage staff may have to be redeployed to deal with PPI redress.”