However, the FSA is not keen on the idea. It said it would need to be convinced that any plans put forward by banks are in the interests of consumers. But the watchdog did not throw out the proposal altogether.
It explained: "A key consideration will be the potential to get compensation to more consumers, more quickly. However, no changes to existing FSA, or future Financial Conduct Authority (FCA), rules would take place without a full public consultation."
How to make a claim
PPI was usually sold alongside credit cards, store cards, loans and mortgages, in some cases without the knowledge of the buyer. Some of those who were mis-sold the insurance would never have been able to claim on it.
If you suspect you may have been a victim, you don't have to wait for your bank to get in touch, although they are required to contact you. And there is absolutely no need to use a claims management firm either as they charge hefty fees for something you can do yourself easily and free of charge.
If you believe you might have been mis-sold the cover you should write to the bank or lender concerned and explain your case. They are legally obliged to respond within eight weeks to tell you about the status of your claim or to ask for more information.
If you're unhappy with the outcome, you can complain to the Financial Ombudsman Service, which is there to solve disputes between financial services firms and customers. It is independent and free to use.
For more information on how to claim, read Mark Hooson’s article.
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