Regulator ponders introduction of PPI claims cut-off date

5 Feb, 2015

The Financial Conduct Authority says it may introduce a deadline for payment protection insurance (PPI) claims.

So far banks and credit card companies have received more than 14 million PPI complaints and paid consumers more than £17bn in compensation. Experts predict that the total cost of this long running saga could be as high as £25bn.

The city watchdog has announced it is considering whether “further interventions may be appropriate”. These rule changes could include a time limit on complaints.

The regulator will announce whether a time limit will be introduced later this year.

In January 2013, lenders approached the regulator and asked it to impose a cut-off date of April 2014 for PPI claims.

At the time the FSA said it would only ever consider such action unless it was deemed to be “in the interests of customers”.

Claims continue to pour in at a rate of more than over 4,000 per week, a staggering number, but it only represents around a third of the weekly claims seen at the peak back in 2013.