(Adds details, background)
LONDON, March 2 Britain's financial watchdog has
said consumers will have until August 29, 2019 to make a claim
that they were mis-sold debt repayment insurance, setting a
deadline for complaints about Britain's costliest financial
Banks including Lloyds and RBS have
collectively paid out more than 24 billion pounds ($30 billion)
to customers who were mis-sold payment protection insurance
The Financial Conduct Authority (FCA) had previously
suggested June 2019 as the deadline, but has now pushed it back
after several months of consultation. The regulator will launch
a major communications campaign in August this year to help
consumers to decide whether to make a claim or not.
Banks are likely to welcome the news of certainty around the
deadline for complaints, executives at Britain's biggest banks
previously told Reuters, because of fears the deadline could
have been extended beyond 2019.
The FCA stressed that most consumers should be able to
handle making their claims themselves, rather than using the
many claims management companies that assist with complaints in
exchange for a slice of the payout.
The regulator also set out guidelines for how firms should
handle complaints by customers who were sold the insurance by
firms that received large undisclosed commissions on the sale,
after a court case on this issue.
The FCA said that if commission levels were more than 50
percent and were not disclosed, then firms should presume that
"the failure to disclose commission gave rise to an unfair
In those cases, the firms will have to contact customers to
tell them they may have an eligible claim, the FCA said, even if
they have previously had a complaint rejected.
The PPI policies, designed to protect borrowers in the event
of sickness or unemployment, were found to have often been sold
to people who would have been ineligible to claim.
Regulators have had rules for PPI claims in place since 2010
and normally a deadline of three years is set, but surveys
showed many people were unaware they had bought the product.
(Reporting by Rachel Armstrong and Lawrence White. Editing by