Deadline put on resolution of PPI claims
The British Bankers' Association and the FSA are currently in talks in a bid to put a deadline on PPI claims, possibly set for next summer. Banks will need to pay for a huge advertising campaign to ensure that everyone is aware of the end date for claims.
According to reports, the FSA is sympathetic to the banks' concerns that claims regarding mis-sold PPI may never end. So a deadline is being put into action and there is likely to be new regulations put in place. One proposed regulation would mirror existing claims rules (that people have six years to lodge a complaint), but if consumers become aware of mis-selling only after this period, they will be given a further three years to lodge a complaint. The new advertising campaign will most likely act as a trigger for the three-year deadline.
An FSA spokesman said: "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."
There is still a huge amount of work to be done by the banks. It looks like the total cost to sort this out is in the region of £25 billion, which is considerably more than the £13 billion put aside. And there's more and more people coming forward to claim compensation, with the Ombudsman adding 1,000 more staff to deal with the hike in complaints.