Consumers who were mis-sold payment protection insurance (PPI) must submit any complaints by 29 August 2019.
The Financial Conduct Authority (FCA) has confirmed this deadline following a consultation period. The regulator had previously mooted a complaints cut off point of June 2019.
All complaints relating to the historic mis-selling of PPI must be made by this date. Only complaints about PPI policies sold after 29 August 2017 will be permitted after this point.
Despite setting a 2019 limit, the FCA is encouraging consumers to act early and says it will launch a two-year campaign in the lead-up to the deadline. It believes that setting a final date will encourage more people to make a complaint.
The regulator has also announced a new basis for complaints. You may now be able to complain if you think your lender earned a high level of commission (50% or more) from your PPI and this was not made clear to you when you bought the policy.
PPI continues to be the most complained-about financial product in the UK. The most recent data shows that more than half of all financial complaints to the Financial Ombudsman Service related to PPI in the final quarter of 2016.
Firms repaid a whopping £26.2 billion for mis-sold PPI policies between January 2011 and December 2016 – the latest figures available.
Andrew Bailey, chief executive of the FCA, says: “Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off. We believe that two years is a reasonable time for consumers to decide whether they wish to make a complaint.
“We have carefully considered the feedback we received and we still believe that introducing a deadline for PPI complaints and a communications campaign warning of the deadline will benefit consumers.”
How can I make a PPI complaint?
If you think you’ve been mis-sold PPI, you first need to complain to the lender. If it doesn’t respond within eight weeks or you’re unhappy with the response you get, you can take your complaint to the Financial Ombudsman Service for free. You do not need to use a claims management company.
PPI is supposed to cover loan repayments if, for example, you lose your job, or stop working due to illness. However, millions of people are thought to have been mis-sold these policies.
To read more about making a complaint or to download a template letter read Moneywise’s guide to PPI complaints.