Mis-sold PPI? The FCA has introduced a deadline for complaints

The Financial Conduct Authority (FCA) has now set a deadline for new payment protection insurance (PPI) claims.

The financial watchdog will run a two-year consumer communications campaign from August 2017 to raise awareness and help consumers decide whether or not to bring forward a claim before the deadline – set for 29 August 2019.

“Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off. We believe that two years is a reasonable time for consumers to decide whether they wish to make a complaint.” said Chief executive Andrew Bailey.

“We have carefully considered the feedback we received and we still believe that introducing a deadline for PPI complaints and a communications campaign warning of the deadline will benefit consumers.” he added.

So far, millions of people have been compensated and banks have set aside more than £40 billion to cover the payouts. Many more are expected to come forward.

Complaints about PPI policies sold after 29 August 2017 will not be subject to the deadline.

PPI is an insurance misselling scandal, which has led to many high street banks being fined and redress payouts exceeding £20 billion.

The most common types of PPI sold were single premium policies on unsecured loans, which totalled about 48 percent of all PPIs sold. The next popular form of PPI sold was credit card PPI, which made up 36 percent.

Financial Ombudsman Service revealed that PPI is, and continues to be, the most complained-about issue at banks, insurers and other financial businesses.

It disclosed that there were 78,000 PPI complaints in the second half of 2016.

The FCA has said that it will require all firms to write to consumers who were previously rejected who are eligible to complain in light of Plevin in order to explain the new basis for complaining to them.