Banks pushing for PPI claims deadline

16 January 2013

A time limit for payment protection insurance (PPI) mis-selling claims is being mulled over by the Financial Services Authority (FSA).

Unsurprisingly, it is the banks pushing for the move, through the guise of the British Bankers' Association. Even though estimates only put compensation payouts so far at £13 billion, half the figure total liability is expected to be, the banks are keen to draw a curtain over the whole debacle.

Any such time limit would be bad news for possible victims of PPI mis-selling, who may find themselves caught out by a change in the claims rules.

High-profile issue

According to the Times, the possible deadline being discussed is summer 2014.

A spokesperson for the FSA says: "As you would expect for an issue of this scale and complexity, we have considered a number of options and continue to do so. PPI is an ongoing and high-profile issue and we are monitoring it closely."

Meanwhile, the Financial Ombudsman Service expects to deal with a record 245,000 PPI cases in the 2013/14 financial year, accounting for two-thirds of its anticipated workload.

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