The Financial Services Authority has opened talks on introducing a time limit for payment protection insurance (PPI) complaints. In a statement released this afternoon, the FSA admitted there had been ‘initial discussions’ to consider the merits of a limit.
The talks followed an approach by the British Bankers’ Association, whose members have had to set aside an estimated £10bn to cover claims for mis-sold insurance.
The FSA stressed that a time limit would be allowed only if banks funded a sufficiently widespread advertising campaign to ensure consumers are aware of the PPI issue and how to complain.
The statement said: ‘We have had initial discussions and are prepared to consider the merits of this and other options. A key consideration will be the potential to get compensation to more consumers, more quickly.’
It added that any changes to existing FSA rules would not take place without a full public consultation.
Banks and financial institutions received complaints about PPI worth £2.2m between January and June 2012, an increase of 129% on the previous six months.