PPI deadline to be imposed by watchdog

VICTIMS of the Payment Protection Insurance mis-selling scandal could this week be given a two-year deadline for filing claims.

The Financial Conduct Authority held consultations earlier this year on introducing a deadline and banks expect the move to be approved at a meeting of the FCA board.

The scandal has already cost banks £24billion and FCA figures show that customers are still being repaid hundreds of millions of pounds in compensation every month.

Mick McAteer, director of the Financial Inclusion Centre and a former FCA board member, said if the regulator introduced a deadline it should force banks to make customers aware that they could have a claim.

He said: ‘The FCA would have to monitor this very closely to ensure banks are promoting awareness effectively and treating new customers fairly and are not dragging their feet on the deadline. Tough enforcement will be critical.’