Banks to foot bill for £42m PPI awareness campaign

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A campaign to raise awareness of a new deadline on complaints for missold payment protection insurance could be funded by lenders, according to a consultation paper from the FCA.

In documents published today, the FCA proposes a two-year campaign to forewarn consumers of a 2018 halt on complaints, which it estimates would cost £42.2m.

The bill would be paid by 18 lenders whose contributions would be relative to their total PPI complaints.

The regulator first proposed a 2018 deadline on PPI complaints last month.

The deadline would also apply to complaints generated by a November 2014 Supreme Court ruling, which held that firms should have disclosed large commissions from the sales of individual PPI policies.

The Financial Ombudsman Service would retain the ability to deal with complaints submitted after the 2018 deadline where it decides a complainant’s failure to complain in time “was as a result of exceptional circumstances”.