LONDON, March 2 (Reuters) - Britain’s financial watchdog has said consumers will have until August 29, 2019 to make a claim that they were mis-sold loan insurance.
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 (PPI) in what has become Britain’s costliest financial services scandal.
The Financial Conduct Authority had previously suggested June 2019 as the deadline, but has now pushed it back after several months of consultation. It will launch a major communications campaign in August this year to help consumers decide whether to make a claim or not.
The regulator also set out guidelines for how firms should handle complaints by customers who were sold loan insurance by firms that received large levels of commission on the sale which was not disclosed, after a court case over the 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 relationship.” (Reporting by Rachel Armstrong)