The British financial regulator has said it plans to impose a two-year deadline for customers to claim compensation for mis-sold loan insurance, drawing a line under the UK’s costliest consumer finance scandal.
The Financial Conduct Authority (FCA) said it planned to introduce the deadline for consumers to claim they were mis-sold payment protection policies, or lose their right to have them assessed.
The FCA said it aimed to issue a consultation by the end of the year, and set the deadline two years from the rules coming into force.
The new rules would not come in before spring 2016, so consumers will have until have until at least spring 2018 to complain, it said.
The FCA said the time limit would also apply to complaints in light of a landmark legal ruling last year by the Supreme Court.
Banks have already set aside more than £28bn to compensate customers with Payment Protection Insurance policies, which were supposed to protect borrowers in the event of sickness or unemployment but were often sold to people who would have been ineligible to claim.
