The FCA has played down claims that it will set a deadline on payment protection insurance claims despite holding a fresh round of talks with banks.
Speaking at the Treasury select committee today, FCA chief executive Martin Wheatley refused to rule out setting a deadline.
Last year the British Bankers’ Association held discussions to push for a deadline of May 2014 but the talks collapsed.
Earlier this week, Lloyds Banking Group set aside a further £1.8bn to deal with PPI claims as its total bill topped £10bn.
Wheatley said: “We are having a discussion and we have had that discussion many times over three years. Our question is: would there be significant consumer benefit to taking away consumer rights? It’s an equation.”
Wheatley says banks need to come up with proposals that have “significant benefits” to consumers.
FCA chairman John Griffith-Jones says: “If banks can come up with a specific scheme where everyone would get their money and it went faster that would be something to listen to. It would be churlish of us to say no but it is quite a high hurdle. They can repeatedly come and talk to Martin as often as they like, and no doubt will.”