FCA set to cave in on PPI claims deadline

FCA logo new 3 620x430

The FCA is set to back calls from the banks for a two-year deadline on bringing claims for missold payment protection insurance despite warnings from its own staff.

The Times reports internal FCA documents which suggest a shift in thinking at the regulator which supports the introduction of a cut-off date for PPI complaints.

In October, the FCA argued the current open-ended approach to complaints means consumers who intended to complain have not yet got around to doing so.

It also said many complaints are coming from claims management firms, with complaints relating to pre-2005 and pre-2000 cases where there are gaps in records.

Since January 2011, a total of £24.2bn has been paid out in redress for missold PPI. The FCA has yet to announce its final decision on whether to impose a claims deadline.

Staff have warned the FCA would be inadequate and did not comply with rules on treating customers fairly.

Internal documents show regulatory staff have said a deadline could only be imposed if banks wrote to customers about the possibility of claiming for missold PPI, which the banks have not done.

An FCA spokesman told the newspaper its consultation over a PPI claims deadline “was designed to encourage all stakeholders to share their views.”