You asked us........

"We are currently in the banks half yearly reporting period and the City is braced for a big dip in profits, largely due to PPI. Bearing in mind your client base, does this have any effect on London House?".

The Payment Protection Insurance mis-selling scandal will no doubt have a huge bearing on the half yearly results of the UK banks. Already we have seen Lloyds, RBS and Barclays show sliding results. HSBC have bucked the trend with a slight increase in profits but there is no doubt that it has been a gruelling six month period. Massive provisions have been set aside to offset or cover the position but it will have long running effects. Further pressure for the banks comes in the form of lending targets, job losses, branch sales and severe financial pressures among the eurozone fringe countries. It is not a happy picture.

The PPI issue in itself does not have any direct bearing on the work we do here or indeed our relationships with our banking clients. As with any business in the spotlight and under financial constraints, the banks need to be aware of costs and look at how best to reduce losses or maximise profits. It is in this way that we can help them directly. The banks continue to ask us to trace "gone away" debtors, find assets, serve documents, interview debtors and recover assets. The more successful we are, the better the impact on our client's balance sheet. In these pressured times, our work often proves to be a cost effective course of action.