2nd Oct 2015 06:33
LONDON (Alliance News) - The UK's Financial Conduct Authority on Friday said it is opening a consultation on introducing a deadline for consumers to make complaints on mis-sold payment protection insurance or lose their rights to have the claims assessed by firms or by the Financial Ombudsman Service.
Confirming recent press speculation, the City regulator said it intends to consult on a deadline which would fall two years from the date the proposed rule would come into force which, subject to the consultation, would not be before spring 2016, meaning consumers would have until at least spring 2018 to make their complaints.
In addition, the FCA outlined plans for a proposed communications campaign, which it would lead, designed to prompt consumers to make their complaints prior to the deadline, should it decide to implement it. This would include a proposed fee rule concerning the funding of the proposed campaign, the FCA said.
The FCA also said it has decided to consult on proposed rules and guidance concerning the handling of PPI complaints in light of the Supreme Court decision on the Plevin v Paragon Personal Finance Ltd case. It said it will provide the full details on these proposals in a consultation document which will be published before the end of this year. The Plevin case involved the non-disclosure by a lender of the level of commission on a PPI contract.
Banks have already set aside close to GBP30 billion for PPI mis-selling compensation, with the state-backed Lloyds Banking Group PLC responsible for almost half that sum.
By Sam Unsted; [email protected]; @SamUAtAlliance
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