The FCA is considering imposing a time limit on complaints for missold payment protection insurance as it reviews the claims process to see whether its approach is working.
The regulator says it is gathering evidence on trends in PPI complaints to determine whether the system is “continuing to meet its objectives” of consumer protection and enhancing the integrity of the UK financial system.
Since January 2011 banks have dealt with 14 million PPI cases, upholding 70 per cent of complaints and paying a total of £17.3bn in redress.
Findings from the review will be released in summer, and the FCA says it may then make further “interventions” if appropriate.
Potential interventions include a time limit on complaints, first discussed by the FSA in 2013, a consumer campaign or other rule changes or guidance.
The FCA says: “While this work continues, the FCA expects firms to continue to deal with PPI complaints in accordance with our requirements.”
In February last year, the FCA played down suggestions a potential deadline on new complaints could be introduced despite holding talks with the British Bankers’ Association.
In August, the FCA demanded banks review 2.5 million claims which may have been unfairly rejected or where consumers were paid too little compensation.