The Financial Conduct Authority (FCA) could consider a time limit on Payment Protection Insurance (PPI) complaints as part of a wider review to decide if the scheme has been a success.
The FCA said it will use this evidence to assess whether the current approach is securing appropriate protection for consumers and enhancing the integrity of the UK’s financial system. It will look at how banks are handling complaints and how PPI complaints are being made.
The regulator will then consider whether further action is needed such as a time limit on complaints or whether to continue the PPI scheme in its current form.
The FCA will publish its conclusions in the summer.
Since January 2011, firms have handled over 14 million PPI consumer complaints about the sale of PPI, upholding over 70% and paying £17.3 billion compensation.