PPI complaints deadline set by City watchdog

(c) Sky News 2017: <a href="http://news.sky.com/story/city-watchdog-sets-ppi-complaints-deadline-for-august-2019-10787048">PPI complaints deadline set by City watchdog</a>
 

The City watchdog is to draw a line under the Payment Protection Insurance (PPI) mis-selling scandal with a deadline for complaints set for August 2019.

It will bring to a close a scandal that has cost Britain's biggest lenders more than £30bn in provisions to cover compensation payouts, with the bill still rising - though at a slower pace than before.

The final deadline for complaints of 29 August 2019 was set by the UK's Financial Conduct Authority (FCA).

However it added that some consumers, including some who have previously been told by a firm that they may have been mis-sold, may run out of time sooner.

The FCA said it would launch a two-year awareness campaign this August to encourage consumers to consider taking action.

Chief (Taiwan OTC: 3345.TWO - news) executive Andrew Bailey said: "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.

"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."

The FCA had previously proposed that customers would only have until spring 2018 to make PPI complaints but this timetable has since been pushed back.

Earlier this week, the Financial Ombudsman Service disclosed that PPI continued to be the most complained-about issue related to banks, insurers and other financial businesses.

It said there were 78,000 PPI complaints in the last six months of 2016.

Banks are still putting aside billions to cover the costs of compensating those who were mis-sold PPI products but Barclays (LSE: BARC.L - news) and Lloyds saw their 2016 profits surge as the provisions were lower than the year before.

Overall Lloyds has made provisions totalling £17bn so far, with HSBC's bill standing at just over £3bn, Barclays at £8.4bn, and Royal Bank of Scotland (LSE: RBS.L - news) on £4.9bn.

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