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FSA considers time limit on PPI claims
by David Sandham on Jan 21, 2013 at 10:06
The Financial Services Authority (FSA) is considering imposing a time limit on Payment Protection Insurance (PPI) complaints, after lobbying from banks facing billion pound compensation bills.
The regulator has been in discussions with the British Bankers' Association (BBA), which has been pushing for a deadline on PPI claims, as banks face a total bill thought likely to exceed the £13 billion they have so far set aside to compensate mis-sold consumers.
The FSA said that a condition to introducing a time limit would be that the banking industry funds a widespread advertising campaign to ensure consumers are aware of the PPI scandal and how to complain.
'Our key priority is to ensure consumers are protected, so the FSA board would need to be convinced that any proposals would be in the interests of consumers,' the regulator said.
'We have had initial discussions and are prepared to consider the merits of this and other options. A key consideration will be the potential to get compensation to more consumers, more quickly.
'We will continue to hold discussions with the BBA as well as actively seeking the opinions of consumer groups and other stakeholders.'
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