Banks ask FSA for a time limit on PPI claimsFSA considers request from BBA to draw a line under PPI scandal
18 January 2013
Which? wants the banks to proactively resolve customers' payment protection insurance (PPI) complaints before even considering a time bar.
The Financial Services Authority (FSA) is considering the request from the British Bankers Association (BBA), which includes a promise to fund a large, wide-spread marketing campaign to make more people aware of PPI mis-selling and the time limit they have to claim.
Consumer protection comes first
PPI is now the biggest financial mis-selling scandal of all time. Which? chief executive, Peter Vicary-Smith, said: 'The first priority for the regulator is to enforce the existing rules so that consumers get their money back and ensure this can never happen again.'
He added: 'It's in everyone's interest to draw a line under this scandal and time limit cut-offs already exist for PPI claims. Before even thinking about a new time bar, the banks should be proactively contacting their customers and making it as easy as possible for people entitled to a legitimate refund to claim back their money, without any hassle.'
The FSA said that consumer protection remains its number one priority. It also confirmed that no changes will take place before a public consultation is held to gauge the response.
Claim back PPI for free
Peter Vicary-Smith commented: 'Many people don't realise there are simple easy to follow steps to reclaim their money for free, and are being bombarded with text messages and TV ads suggesting they use expensive claims management companies.'
'The government must now act to clamp down on unscrupulous CMCs and concentrate on reforming the banks so that they work for customers not bankers.'
If you think you've been mis-sold a PPI policy and want to claim compensation – use our free PPI claim tool to submit your complaint.