News emerged on Wednesday that firms are struggling to meet their normal PPI complaint handling times as a result of a significant spike in complaints during the month of the final deadline.
The Financial Conduct Authority said that though firms have measures in place to handle the PPI complaints, several have informed the regulator that some complaints may not receive a final response until summer 2020.
The deadline for customers to claim mis-sold PPI was 29 August.
The Financial Conduct Authority had launched a nationwide communications campaign to raise awareness of the approaching mis-sold PPI complaints deadline.
At the start of September, Lloyds Banking Group (LON:LLOY) said it would dedicate an additional £1.8 billion in order to settle any claims of mis-sold PPI.
Meanwhile, the Royal Bank of Scotland warned at the start of September that it expects a hit of up to £900 million after a rise in PPI claims.
“We are challenging firms to deal with these complaints as quickly as is reasonable, given the very large volumes. It will take time for some consumers to receive their response but it is important to us that these complaints are handled fairly and accurately,” the Financial Conduct Authority said in a statement.
“If following your complaint, you are entitled to compensation, you will receive interest on the amount you are due (typically 8%), which will include the length of time it took to respond, so you won’t lose out financially from any delay,” the Financial Conduct Authority added.
Shares in Lloyds Banking Group plc (LON:LLOY) were trading at +0.074% as of 11:04 BST Wednesday.
Shares in the Royal Bank of Scotland Group plc (LON:RBS) were trading at +0.84% as of 11:06 BST Wednesday.
