FCA: PPI compensation can only be claimed up to 2018
27/11/2015
People in the UK who were mis-sold payment protection insurance (PPI) will now have until 2018 to claim compensation under new regulations introduced intending to draw a line under the issue.
The PPI mis-selling scandal was one of the biggest the country has ever seen, and so far Britain’s banks have set aside £28 billion to cover refunds and compensation.
The Financial Conduct Authority (FCA) released a consultation paper on Thursday that set out new rules on PPI complaints. The new rules mean setting a deadline for complaints about PPI sales two years from the paper being published which will be sometime in 2018.
A campaign to inform consumers about the time limit will be funded by banks who mis-sold the insurance. The FCA believes that the consumers awareness campaign will cost £42.2 million or £3.64 per PPI complaint and will be paid by 18 lenders over two years in proportion to their level of PPI complaints.
In an official statement, the FCA said:
"Consumers who are unhappy about PPI should continue to complain to the firms concerned and to the Financial Ombudsman Service if they are not satisfied with the response.
“Making a complaint is free and most people should not need to use a claims management company to help them”
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Pet policy disputes rise by 60 per cent
After the Financial Ombudsman Service (FOS) reported a massive rise in complaints about pet insurance policies last year, experts are urging that owners read the small print to check that their animal is adequately covered.The majority of the cases called were found in favour of the insurers because policyholders had failed to disclose pre-existing conditions.FOS spokeswoman Emma Parker told the T...
Read MoreIs it time to review your car insurance?
If there is one area of the insurance market which continues to attract the wrath of UK consumers it has to be the car insurance sector. This is an area of the insurance market where premiums constantly seem to go higher and higher with legally insured drivers also paying the price, and the cost, of those who drive on the UK roads without insurance. So is it time to review your car insurance? M...
Read MoreFolks with more green go for eco-insurance
While previously environmentally-friendly products have been seen as the preserve of hippies and bohemians, companies have found that people with a few more notes in the bank are now investing in more eco-friendly products. According to the Environmental Transport Association (ETA), the demand for products such as 'green' car insurance has risen recently as environmental matters come under the pol...
Read MoreTravellers urged to study insurance cover
Britons should familiarise themselves with the terms of their travel insurance or risk serious financial consequences, it has been claimed. A new study from MoneyExpert found that 12 per cent of people do not know what travel insurance covers. This could potentially lead them to missing out on claiming or worse may result in them being underinsured in the event of a serious accident. The widesprea...
Read MoreGordon Brown forced to reconsider national insurance rise in 2011
Gordon Brown is tonight under serious pressure from backbenchers to reconsider the 0.5% increase in National Insurance which he intends to implement in 2011. The move is forecast to increase costs to UK business by something in the region of £2.65 billion and severely dent industries ability to bounce back from the ongoing recession. While 2011 may seem some time away, the ongoing UK recession is...
Read More