Lloyds Banking Group (LLOY.L) has revealed its 'disappointment' ot the High Court's dismissal of a judicial review of controversial payment protection insurance (PPI) complaints handling measures.

The review had been sought by bank trade body the British Bankers' Association (BBA) and Principality Building Society subsidiary Nemo Personal Finance.

The bank trade body and Nemo may now seek to appeal the court’s judgment.

In a market statement, a Lloyds spokesperson said, 'We are disappointed with the outcome of today's judgement and are considering its detail very carefully.

'The BBA, in conjunction with its members, is now giving consideration to next steps including whether it would be appropriate to apply for permission to appeal.'

According to the bank, the financial impact will only be able to be assessed once all legal proceedings have been finally determined.

The bank warned the impact of complaints handling policy and the Financial Ombudsman Service's (FOS) approach to complaints 'could be material to the group's financial position'.

The trade body had sought orders quashing the FSA's policy statement and the Financial Ombudsman Service's (FOS) decision to determine PPI sales in accordance with the guidance published on its website.

In a statement from the Financial Services Authority, a spokesperson said its primary aim had been to secure 'proper redress' for consumers with genuine complaints.

'We believe this decision signals the end of years of poor complaint handling and will trigger a dramatic improvement in the way customers are treated when complaining,' the spokesperson added.

According to the regulator, there have been more than 1.5 million PPI complaints since it took over regulation of the industry in 2005.

The regulator's spokesperson said firms had, on average, rejected 60 per cent of complaints, with the vast majority of those referred to the Financial Ombudsman Service upheld.