Banks and FSA seeking PPI claims deadline - report

The British Bankers’ Association and the FSA are in talks to impose a deadline on payment protection insurance (PPI) mis-selling claims from consumers.

Citing industry sources, The Times reported that banks have suggested a cut off point of next summer for PPI mis-selling claims. In return, banks would fund an advertising campaign making consumers aware of the deadline for mis-selling claims.

The Times said the FSA was sympathetic to banks’ fears that there seems to be no end to PPI mis-selling claims, despite hopes that the majority would have been filed last year.

In recent years, the UK’s big banks have set aside billions of pounds to compensate consumers who claim they were mis-sold PPI.  

The Times also cited estimates that the total PPI bill for banks would be £25bn, almost double the £13bn banks have set aside to compensate consumers.