Firms ordered to pay fee for FCA PPI campaign

It estimates the cost of the proposed campaign as £42.2m over two years. To fund this, it is proposing a new fee rule, applying to the 18 firms (who were not named in the consultation), requiring them to pay this sum over two years.

According to Which? figures, the total amount now set aside by the big five banks alone for PPI compensation is around £27.4 billion.

The FCA said it would write to those firms affected by the proposed rule, setting out the total complaints they have reported and the amount of their proposed fee.

The consultation paper said:

"We consider that confining the fee to these firms is appropriate because they are most responsible for causing PPI complaints, and will receive the most benefit from the certainty and other effects of the proposed deadline that the campaign will support."

The regulator is also proposing to ask firms to support the consumer communications campaign with messaging of their own that would reassure PPI consumers about how they would be treated if they complain.

The FCA first consulted last month on a proposed new deadline by which consumers would need to make their PPI complaints.

The deadline would fall two years from the date the proposed rule comes into force, which is expected to be spring 2016 – meaning PPI consumers would have until spring 2018 to complain.