As reported in today's (13 April) Guardian, the consumer watchdog Which? have warned against the Financial Conduct Authority (FCA) imposing a time bar on claims for mis-sold Payment Protection Insurance, labelling the plan as "Ill-judged" and warning that it would set a dangerous precedent.

At the end of 2015, the FCA initiated a consultation process seeking to impose a time bar on PPI claims - which would seek to impose this deadline for Spring 2018, thereby drawing a line under the biggest financial scandal in recent history.

In response to this consultation, the ACC also vehemently opposed the proposals to impose such a two year time limit, and argued against this proposal.

Today, Which? have added their weight to this argument by stating:

"The introduction of a time limit on PPI compensation claims will set a dangerous precedent and could lead to a further increase in nuisance calls, Which? warns. There is concern that a two-year time limit for PPI complaints will set a dangerous precedent and result in banks having little incentive to pay out compensation swiftly and directly to consumers in future mis-selling scandals."

Which? executive director Richard Lloyd said:

"Before the FCA goes ahead with any proposals for a time limit, Which? wants to see: a simpler process for making a claim, with banks required to accept complaints electronically tighter regulation of CMCs, with directors personally accountable if their company breaks nuisance calls rules more information published about how firms have handled claims to date, the amount of redress outstanding and how the FCA will judge the time limit to be a success."

Which? also add that putting the onus on consumers to make a claim when they might not know they have reason to complain is not the most cost-effective way to ensure that consumers get their money back.

The ACC, acting to provide consumers with the best service possible from their CMC welcomes the call for tighter and better regulation of bad claims management companies, and further agrees that this time bar proposal is not the right solution for consumers who have still to claim compensation.