Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the estimated £70 billion in unpaid compensation for the mis-selling of payment protection insurance, if he will review the deadline for making a compensation claim.

The Financial Conduct Authority (FCA)’s decision to set a deadline for mis-sold Payment Protection Insurance (PPI) was announced in August 2017, and gives consumers two years to make a claim. The government is confident in the FCA’s approach to handling mis-sold PPI and the deadline was set by the FCA in their role as an independent regulator. For this reason, the Chancellor is unable to review the deadline.

The deadline was set to prompt consumers to complain or check whether they had PPI. It is intended to help consumers get redress sooner, improve the efficiency of PPI complaints handling, and bring the PPI issue to an orderly conclusion to rebuild trust in the retail banking sector.

The FCA will write to Laura Smith MP to set out their position in more detail.