LONDON, Oct 2 (Reuters) - Britain's financial regulator saidit planned to impose a two-year deadline for customers to claimcompensation for mis-sold loan insurance, drawing a line underBritain's costliest consumer finance scandal.
The Financial Conduct Authority (FCA) said on Friday itplanned to introduce the deadline for consumers to claim theywere mis-sold payment protection policies, or lose their rightto have them assessed.
The FCA said it aimed to issue a consultation by the end ofthe year, and set the deadline two years from the rules cominginto force. The new rules would not come in before spring 2016,so consumers will have until have until at least spring 2018 tocomplain, it said.
The FCA said the time limit would also apply to complaintsin light of a landmark legal ruling last year by the SupremeCourt.
Banks have already set aside more than 28 billion pounds tocompensate customers PPI policies, which were supposed toprotect borrowers in the event of sickness or unemployment butwere often sold to people who would have been ineligible toclaim. (Reporting by Steve Slater. Editing by Jane Merriman)