The Financial Conduct Authority (FCA) has set a deadline of 29th August 2019 for making payment protection insurance claims.
This leaves consumers who were mis-sold PPI with a little over two years to claim for compensation.
UK banks set aside £30bn to compensate customers and have already paid out £26bn.
Lloyds Banking Group sold the most PPI to its customers, resulting in a total compensation pot of £17bn.
By drawing a line under the PPI mis-selling scandal, the FCA will be hoping banks can start to restore consumer trust.
It will be interesting to see how the regulator communicates this new August 2019 deadline to those individuals who could potentially claim, to avoid victims of PPI mis-selling missing out.
It’s been clear for years that the banks should be working much harder to resolve PPI claims fairly. The current process has been wholly inadequate and driven too many consumers to use claims management companies.