The regulator is warning it will crackdown on banks that don’t deal with payment protection insurance complaints adequately.
The Financial Conduct Authority says it will be closely monitoring how banks handle PPI complaints ahead of the deadline for claims in August 2019.
It comes after the FCA this month launched a campaign encouraging consumers to take action before the deadline, starting with a £4.9 million television advert featuring Arnold Schwarzenegger.
FCA director of supervision Megan Butler tells the Times: “The deadline is the deadline, but if we find firms are not meeting the standards we expect, we will take action.”
The watchdog can force banks to write to customers who may have had PPI as well imposing fines on any firms which do not treat customers fairly.
PPI has so far cost banks £40 billion in compensation and administrative expenses. It is estimated some 64 million policies were sold to customers between 1990 and 2010.
Butler says the priority is to get the public to understand there is a deadline for claims, and that other messages will follow with adverts on billboards, in newspapers and on social media.