The FSA has confirmed rumours that it has been approached by the British Bankers’ Association (BBA) to discuss the potential for introducing a time limit for Payment Protection Insurance (PPI) complaints.
It is understood that the banking industry are offering to fund a “sufficiently widespread advertising campaign” to ensure consumers are aware of the PPI issue and how to complain.
The regulator said its key priority is to ensure consumers are protected, so the FSA Board would need to be convinced that any proposals would be in the interests of consumers.
The FSA said is has had initial discussions and are prepared to consider the merits of this and other options. A key consideration will be the potential to get compensation to more consumers, more quickly.
In a statement it added: “We will continue to hold discussions with the BBA as well as actively seeking the opinions of consumer groups and other stakeholders.
“However, no changes to existing FSA, or future Financial Conduct Authority (FCA), rules would take place without a full public consultation.”
So the banks are trying to get the Regulator to put a 'backstop' in place.
While this is very understandable and would allow the banks to draw a line under this whole sorry affair it flies in the face of the FSA's refusal to allow IFA's / mortgage brokers etc. the 15 year backstop they need, effectively making them liable after retirement and potentially till death, and beyond!!