PPI Time Limit!

The Financial Services Authority has opened talk on introducing a time limit for payment protection insurance (PPI) complaints. In a statement, the FSA admitted there had been 'initial discussions' to consider the merits of a limit.

Barclays boss Antony Jenkins also spark further controversy by also calling for a deadline for PPI claims. Grilled by the Parliamentary Commission on Banking Standards, he claimed it would "encourage people to complain... so they get their money quickly and fairly."

But Labour's John Mann said "It's not for them to set limits. They've done wrong. Why doesn't he pay it back himself rather than wait on people to come forward?"

Barclays has set aside £3.45billion to cover claims from PPI and complex financial products mis-selling.

Business Secretary Vince Cable has also urged banks to rapidly repay affected customers.

The talks followed an approach by the British Bankers' Association, whose members have set aside an estimated £10bn to cover claims for mis-sold insurance.

The FSA stressed that a time limit would be allowed only if banks funded a sufficiently widespread advertising campaign to ensure consumers are aware of the PPI issue and how to complain.

The statement said; "We have 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."

It added that any changes to exisitng FSA rules would not take place without a full public consultation.

Banks and financail institutions received complaints about PPI worth £2.2m between January and June 2012, an increase of 129% on the previous six months.

The FSA is considering the request but is yet to make a decision either way.

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