FCA suggests 2018 deadline for PPI claims

The Financial Conduct Authority has taken a step closer to drawing a line under the payment protection insurance scandal, as it suggested a 2018 deadline for the filing of any compensation claims.

The FCA had announced in early October that it would consult on the introduction of a deadline on complaints over PPI, which was originally intended to cover borrowers against potential default on loans in case they lost their jobs or had an accident, but was often mis-sold to those who could not make a claim.

The UK watchdog said a new campaign to inform customers of the deadline would be funded by the banks who mis-sold the insurance. It said 18 financial firms would be forced to pay £42m for an ad campaign.

Banks have already set aside more than ​£​28​bn to compensate customers, with Lloyds Banking Group accounting for about half that amount.

The watchdog said those with views on the proposals set out in the consultation paper have three months to respond and any comments on, or evidence about, the proposals should be sent by February of next year.

A spokesman for the FCA said: “Making such complaints is free to consumers and most people should not need to use a claims management company to assist them.

“Consumers who intend to complain about PPI should do so as soon as possible.”