After years of nuisance phonecalls and bankers' misery, the Financial Conduct Authority (FCA) has finally set a deadline for complains over payment protection insurance (PPI).
Although this isn't the end of PPI: the regulator said it will run a "two-year consumer communications campaign" to encourage consumers to act.
“Putting in place a deadline and campaign will mean people who were potentially mis-sold PPI will be prompted to take action rather than put it off. We believe that two years is a reasonable time for consumers to decide whether they wish to make a complaint," said Andrew Bailey, the FCA's chief executive.
“We have carefully considered the feedback we received and we still believe that introducing a deadline for PPI complaints and a communications campaign warning of the deadline will benefit consumers.”
The move will be good news for banks, whose profits continue to be hit by PPI: in October, it was reported banks were bracing themselves for another £2bn PPI bill, on top of the £35bn they have already been fined (although proposals mooted in December suggested lenders could pocket £23bn in unpaid PPI compensation if consumers don't speak up).
The regulator also confirmed a 50 per cent "tipping point" on commission: after a ruling in the Supreme Court, financial providers who didn't disclose commission will be forced to pay the excess commission over a 50 per cent tipping point.
Meanwhile, al firms will be required to write to complainants who have rejected previously, but who could now be eligible under the new rules.