FCA proposes deadline for PPI claims

The Financial Conduct Authority (FCA) is looking to set a deadline of at least spring 2018 for consumers to lodge complaints about payment protection insurance (PPI).

In a statement released Monday, the FCA said it will publish a consultation paper by the end of the year on setting a deadline, which would be two years from the rule being set.

The authority believes the rule won’t be set until at least spring 2016, making the proposed deadline at this stage spring 2018.

Consumers would have to make their PPI complaints by that date or else lose their right to have them assessed by firms or the Financial Ombudsman Service.

The FCA is also planning a communication campaign after a growing number of complaints made through claim management firms.

It’s hoping to encourage more consumers to complain directly to firms, rather than using and paying third parties, as well as prompt consumers who want to complain into action.

The authority said it will continue to monitor how PPI complaints are handled by firms under current rules and will take action when complaints aren’t dealt with promptly and fairly.

The news has sent shares in Barclays, Lloyds and Royal Bank of Scotland up early in the day.

Accendo Markets’ Mike van Dulken said the deadline might seem quite far away for short term investors.

“It would at least put an end to what has been a seemingly never-ending stream of provisions, stalking banks’ financial results quarter in, quarter out.

“[It’s] no surprise to see Lloyds outperforming peers, given that it is the biggest offender so far having set aside a whopping £13.4bn.”