FCA hints at tighter regulations on PPI complaints

The Financial Conduct Authority has introduced the possibility that it may enforce a time limit on complaints about payment protection insurance (PPI), the mis-selling controversy that has so far cost banks more than £17bn in compensation.

The group said it intends to analyse complaint trends and “consider whether further interventions may be appropriate”.

This move has followed a recent statement made by chief executive of the independent Financial Ombudsman Service (FOS), Caroline Wayman. She claimed that banks will have to pay PPI compensation for many years yet.

FOS serves customers who have an issue with their lender. The firm picks up 4,000 new PPI cases each week.

While Lloyds Banking Group has the largest PPI bill to pay off, £11bn, but since January 2011 banks have had to shell-out £17.3bn to customers who feel duped into purchasing the faulty insurance.