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FSA considers time limit on PPI claims

by David Sandham on Jan 21, 2013 at 10:06

FSA considers time limit on PPI claims

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.'

1 comment so far. Why not have your say?

Usually found sitting on the fence

Jan 21, 2013 at 12:18

This is so frustrating. Had the banks just got on with the job of reviewing all their PPI cases and made good on the cases where they were liable. Paid out on the cases they could not demonstrate reasonable steps had been taken to ensure suitability. Perhaps then there would not be the millions of calls, texts and post claiming to be in a position to help reclaim money owed. Perhaps if they had quietly just done the right thing, the cost in cash, time and effort would have been considerably less...

How is putting a time limit on it ever going to be in the client's best interest?

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