Can the FSA impose a cut off point for claiming PPI?

26 Oct

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Over the past few months, the British Bankers’ Association (BBA) has been in talks with the Financial Services Authority (FSA) about potentially imposing a cut-off point for claiming back mis-sold payment protection insurance.

In a statement the FSA said that any decisions or proposals made would be in consumers’ best interests, and that changes to the rules (if indeed there are any changes) would only go ahead after a full public consultation.

While discussions are still in their early stages, it’s worth taking a moment to consider not only how consumers could be affected if the decision goes ahead, and whether this would be a fair decision, but also why the FSA and BBA are considering a ‘time-bar’ for PPI claims in the first place, and what this could mean for the economy. With even the four biggest British banks not being able to agree on whether imposing a deadline would be the right decision, it’s no wonder the authorities are taking their time to consider all options extremely carefully.

Many people have argued that a deadline would be unfair to consumers given the scale of the PPI mis-selling scandal that went on for years. Is it ethical to impose a ‘time-bar’ when the consumer is entitled to claim? Another viewpoint is that the need for a deadline has disappeared as the trend for PPI claims is slowing down.

The FSA maintains that its key priority is to ensure consumers are protected. With this in mind, one might question why it is considering imposing a cut-off point at all, as surely this would mean some consumers would miss out on the opportunity to claim for what they are rightfully entitled to. One of the proposals states that if a cut-off point was introduced, the banking industry would fund widespread advertising to raise awareness and ensure people knew how to claim. This could mean that a cut-off point might actually help to increase the number of claimants and make it easier for consumers to receive what they are entitled to.

A deadline would also encourage people to make claims more quickly. In the short term this might affect the banking industry’s finances, but in the long term this could be more beneficial, enabling authorities to plan for the future knowing no more compensation will be released after a certain date. If the decision went ahead, however, there must be clear guidelines so consumers do not miss out on any claims still being processed after the cut-off point.

Whether or not a cut-off point is introduced, if you think you have been mis-sold PPI and aren’t sure where to begin in making a claim, a PPI reclaiming company such as Gladstone Brookes can take away all of the hassle and make the process very simple.

Finally, it is important to remember that while discussions are still in the early stages, no changes to existing rules would take place without a full public consultation.

64 Responses to “Can the FSA impose a cut off point for claiming PPI?”

  1. Fredia February 26, 2013 at 9:11 pm #

    I need to know who are the regional allies of the Middle Eastern region.

  2. Rodolfo March 8, 2013 at 1:02 am #

    I know that fertility procedures are tax deductible. My wife and I tried IUI and motility tests for me. Virtually all of it was paid for with her tax free FSA card and my tax free HSA card. Being that they are pre-tax accounts, would it still be deductible?

  3. Lekisha March 8, 2013 at 3:04 am #

    Specifically, my employer is changing our health coverage slightly, which will raise my expected out of pocket for the year. Wouldn’t this qualify as a significant change of coverage and therefore permit an adjust to the FSA account?

    Please provide sources. I need ammo.

  4. Norine March 11, 2013 at 6:36 am #

    1.Health Care FSA: Since I signed up the family insurance plan (me, husband, and the baby when he is born), does it mean the monthly medical insurance premium I paid is not eligible for FSA expense? If so, will my portion of the monthly premium be eligible?

    2.Dependent Care FSA: I’m planning to have a nanny to take care of the baby after I return to work. How do I reimburse it since it’s paid to individual? Will check copy work?

  5. Carmel March 15, 2013 at 12:14 am #

    I know there are specific limitations regarding medical FSA’s and such but I wasn’t sure regarding dependent care. My wife and I have a High Deductible Health Plan and HSA through her work and we are having a child soon so we are considering the dependent care FSA through his work for upcoming day care expenses and such but we don’t want to get hit on taxes or do anything that would effect the medical side. Any accountants and tax professionals with advice? Thanks!

  6. Roy March 15, 2013 at 6:06 pm #

    I have my sram omniums laced to sugino zen, but I wanted to gear up to 53t,
    but I couldn’t find and track cranks that high.

    Will my FSA energy 53t road cranks fit ?

  7. Meta March 16, 2013 at 10:15 am #

    I have a Medical Flex card ans I am looking for somewhere that will let me use my FSA card to purchase this product. Any help?

  8. Travis March 16, 2013 at 3:49 pm #

    I have lots of overdue bills from 2009. Instead of paying them from my after tax dollars, I am wondering if it would be possible to allocate before tax dollars (for that pending bill amounts) in 2010 FSA account and pay them from it?
    FSA = Flex Spending Accounts

  9. Hollis March 18, 2013 at 2:45 pm #

    I have a $2500 FSA for healthcare. Money is taken out of my check from Jan to Dec. I have spend almost 1900 as of April, but only $800 has been taken out of my checks. If I quit or loose my job right now, what happens? How will the FSA company get their money back?

  10. Garnett March 22, 2013 at 6:34 am #

    backed Bashar. How can the FSA stand a chance against artillery, tanks, warplanes, helicopters?

  11. Rodger March 22, 2013 at 7:54 am #

    My FSA claims deadline was 3/31/11, I thought it was 4/30/11. I called the FSA company and they stated I missed the deadline and the money would be forfieted. Is there any legal recourse I could persue?

  12. Dudley March 22, 2013 at 9:41 am #

    Can I get FSA benefit (declaring contribution to be withheld pre-tax) for my son if he goes to day care only twice a week for 3/4 hours. My spouse is stay home mom. Is it necessary to have both the parents working to get dependant day care FSA benefit?

  13. Mollie March 24, 2013 at 7:38 pm #

    I know i get a tax break on day care charges, so will opening a daycare FSA benifit me? I don’t want to run the risk of over estimating cost and loosing the money. I also think i saw $3000 is the most i could claim on taxes but my company has a limit of $5000 on the fsa.
    Thanks folks looks like if i use the fsa i save the 25% (my tax bracket) vs if i dont i get credited 20% (per tax credit)

    That sound about right?

  14. Pura March 25, 2013 at 2:07 am #

    My wife and I can both put money in FSAs. Her FSA is based on a fiscal year ending June 30, while mine is based on a calendar year.

    I took out $4k this year. If the expenses this year are $4,800, can she take out $2000 and apply $800 to this year’s expenses and $1200 to next year’s? Or will we lose money because the expenses (in her program) must be taken out uniformly, thus meaning that if $2k were alotted, $1,000 would show up in our taxes as a pre-tax FSA amount and could apply only to expenses this year?

    If we couldn’t apply more of the expenses to next year, we would simply take out $1,600 this year because we know we’ll still have $800 in uncovered expenses this year and a lot more than that next year.

    Thanks. I hope that made sense.

  15. Vida March 26, 2013 at 6:12 am #

    My husband is having surgery next week. His FSA starts over in April. He has used all the money in for this year. We have our insurance through his employer but I also have an FSA through my employer. Will I be able to withdraw from my FSA to pay the balance of the surgery costs?

  16. Jacquelyn March 26, 2013 at 1:59 pm #

    Is D E Shaw, a Shaw capital investing management services authorised by FSA and not a scam? I cant’ find reference.

  17. Felipe March 26, 2013 at 10:15 pm #

    I am married and my wife and I have health insurance separately through our respective employers. My plan is a copay plan with an FSA. Hers is a high deductible plan with an HSA. We have a baby due on January 10th and will put the baby on her insurance policy. Can we keep both her HSA and my FSA, or do we need to get rid of one, and if so, when? Can we finish out the year, or does it stop immediately?

  18. Minnie March 27, 2013 at 6:02 pm #

    I am studying the WALKER REVIEW under FSA and not being able to find out whether one person can have chairmanship of 2 different companies.

  19. Billie March 28, 2013 at 5:43 am #

    I enrolled for flexible health account with deduction from my every pay check. I think, I have contributed more amount than my anticipated medical expenses till Dec 2007. I may not reimburse all the amounts. I know that FSA is “use it or lose it” type. If I continue to contribure rest of the year, all the amount may get unused. Now my question is, Can I request my employer to stop deducting the FSA contribution in middele of the year?

  20. Carroll March 29, 2013 at 9:08 am #

    I don’t know if she claims her wages or not, but if we use the dependent care FSA thing through our company, does that force her hand? Do we need to submit paperwork to her then at the end of the year or anything like that?

  21. Ivan March 31, 2013 at 9:23 pm #

    What is the amount of fees, an FSA regulated forex brokerage company is supposed to pay annually to cover for the riskiness of its business? How are those fees decided? Where can I find the related information?


  22. Arnulfo April 1, 2013 at 8:06 am #

    I had a FSA account which i closed last month. How long i can use it in 2008 only or in 2009 too. Also can i use this to my dependents medical bills. Please help.

  23. Mathew April 1, 2013 at 3:09 pm #

    My husband and I are self employed.We carry health insurance,but because of all the loop holes,we end up paying alot of out of pocket expenses.I,m interested in knowing if an HSA or FSA or something similar would save us money.

  24. Hobert April 1, 2013 at 5:58 pm #

    My glasses broke and i need a new pair. I happen to be in India so i want to use the FSA money.

  25. Micheal April 1, 2013 at 10:18 pm #

    The grace period for my FSA (Flexible Spending Account) will end on 3/15/09 (yeah, that’s tomorrow). I still have about $100+ left in the account. What are some big items that I can purchase that are reimbursable by FSA? I know my wife can buy AOSept for her contact lens. But at ~$10 a bottle, we need to buy 10 of those. Are there any other choices?

  26. Britta April 1, 2013 at 10:18 pm #

    I have a FSA (Flexible Spending Account) for medical expenses set up with my employer. My employer does not include this reduction of taxable income on the W2’s and are not required to when it is for a (Health) FSA.
    Also, if this was a FSA for child care then my employer says they would be required to show the reduction of taxable income on the W2.

  27. Evita April 2, 2013 at 9:56 am #

    We use a dependent care FSA to help pay for day care costs. However, the costs per year far exceed the allowed $5000 in the FSA. Is it possible to get the childcare credit on the remaining balance of the day care costs for the year?

  28. Era April 3, 2013 at 7:43 pm #

    I wanna get a free macbook pro but it says this “FSA is not directly affiliated with the manufacturers of the products we offer.
    All trademarks, logos, and product images are the property of their respective owners”

    Please help

  29. Lela April 4, 2013 at 11:19 am #

    If someone contributes $5k to Dependent Care FSA during a year but ends up doing a Married Filing Separate return at year end, I know tax needs to be paid on the ineligible $2500 at year end. But can expenses be claimed up to $5000 from the FSA Administrator?

  30. Nestor April 4, 2013 at 2:48 pm #

    I purchased some items with my FSA debit card and now need to return them. The card is no longer valid because I left the company a week ago. How will I get my money back from the store (Walmart and Target)? Will they issue a refund to the card and then I have to get it from my old employer? Please help because I want to know how this works before I go to the return desk.

  31. Sheldon April 5, 2013 at 8:00 pm #

    Carrots- Dyed parsnips? Mmn this chicken nugget really is the dogs bollocks. Should the farrier that put the horseshoes on this cow have gone to Spec-savers?
    Come on, FSA (Food Standards Authority), get off your bottom and earn your money.

  32. Sheila April 6, 2013 at 5:06 am #

    The settlement says he is allowed to claim kid#1 on his taxes but I pay child care. Can I claim kid#1 and kid#2 on my FSA?

  33. Jarred April 6, 2013 at 9:15 pm #

    Our medical expense for 2009 will exceed the FSA limit and 7.5% AGI. My question is, can we use FSA for some medical expenses, and itemized the rest that is not reimbursed by insurance or FSA?


  34. Susanne April 7, 2013 at 3:27 pm #

    I have the option of enrolling in a high deductible health plan which offers a HSA. My company also offers the option of a FSA with other lower deductible health plans. I know the similarities and differences between a FSA and HSA. Does it make any sense to enroll in a FSA when I can get a HSA? Does it make any sense to have both?

  35. Violet April 8, 2013 at 2:15 pm #

    I have a 2 month baby girl and would like to add the FSA at work but what are the advantages and disadvantages to have this account.
    Also, will this impact claiming my child on my tax return (child credit)
    Any feedback will help me – Thanks

  36. Gavin April 9, 2013 at 5:09 am #

    I am Financial student and i would like to take the FSA exam this year to gain more knowledge and show my commitment towards investment banking. Unfortunately, I need to have bachelor degree to start CFA that is why i thought i will take the FSA then.

  37. Taunya April 9, 2013 at 10:10 pm #

    Had HSA in 2010 – stopped contributing this year and switched to better insurance plan plus FSA.

    I had to purchase contacts with my HSA money because they were expensive. Can my FSA funds reimburse me for this purchase and be put back into my HSA?

  38. Markus April 10, 2013 at 7:55 am #

    I already fully funded my health care FSA for 2010, no more contributions allowed; but just got laid off, how can I access the balance left?

  39. Garnet April 10, 2013 at 11:30 pm #

    I’ve ordered glasses online and would like to know if FSA (flexible spending account) will reimburse me for shipping in addition to the cost of the eye glasses. Thanks!

  40. Geoffrey April 12, 2013 at 11:12 am #

    I am trying to figure out my 2008 Medical FSA account funding. I have an outstanding medical loan for LASIK of about 1500. Can I pay off that loan with my FSA?

  41. Salena April 13, 2013 at 12:58 pm #

    FSA is supposed to be banks’ watchdog and adviser not to teach them to do their business. Asking banks to increase their capital requirements and imposing taxes on their business activities is utter rubbish.

  42. Rosendo April 14, 2013 at 3:48 pm #

    I am on an FSA, and I have receipts dating back to 2006 for various medical expenses. I’ve never seen requests for documentation once the plan year has passed. I’d like to throw some of them out. Can I?
    FSA = Flexible Spending Account for healthcare expenses in the US.

  43. Berry April 16, 2013 at 5:53 pm #

    I need to find out the definition of an FSA Breach but I can’t find a simple answer to my question on the internet. Can anyone direct me to the correct place or give me an answer?

  44. Shanta April 18, 2013 at 10:45 am #

    I was hired in June of 2012. I have medical expenses incurred in April and May of 2012. Am I able to use the company FSA program to pay for those medical expenses? The company plan year is January 1 2012 to Dec 31st 2012.

  45. Ted April 21, 2013 at 6:37 pm #

    I am leaving my current job next week. As of today, I have deposit about $750 into my FSA health account, but only made claims of $460. In order to use the entire $750 do I have to submit claims dated on or prior to my last day or can I use the rest of the year to do that (since its use it or lose it by the end of the year)?

  46. Abe April 21, 2013 at 7:17 pm #

    Does the FSA see an organic search result, for say a mortgages webpage, as being a promotion and therefore requiring a caveat in the metadata for the page description?

  47. Sal April 26, 2013 at 5:38 pm #


    Is there any requirement for an MSB that is already registered with HMRC to register with the FSA? If so, what are the conditions and requirements?


  48. Luis April 28, 2013 at 6:54 pm #

    I recently applied for a job as a car salesman with a large organisation and went through all the interviews etc. I reallly want the job but have a poor credit history and have a CCJ, am i wasting my time getting my hopes up for the job? Because if they try to register me at the FSA my CCJ will show! HELP!!!!

  49. Robby April 28, 2013 at 7:33 pm #

    My hubby is self-employed – sole proprietor. I recently became a teacher and I’m trying to decide which is best – opening an FSA for childcare OR waiting and claiming the expenses on our taxes. Also, deciding whether to do the FSA for medical costs OR claiming on our taxes. Our income before taxes this year will probably be around 80K. Any suggestions?

  50. Siobhan May 2, 2013 at 11:33 am #

    Hello, I work for a company that does not offer insurance because I am their only employee. I want to try to set up an FSA account at my work though. I am covered by health insurance and an FSA account through my husband’s work already. My question is: Can I get a second FSA account through my work without my work offering insurance? Or can I use my husband’s insurance as my primary insurance and use an FSA account from his employer and FSA account from my employer?

  51. Aleida May 3, 2013 at 1:52 pm #

    I have done the Dependent Care FSA with my employer for 3 years now, but it’s a huge pain to claim to get my money reimbursed biweekly. How much of a benefit am I actually getting by going through this process? Can’t I just claim my up to $5,000 on my tax return at the end of the year and get the same tax break?

  52. Sharolyn May 3, 2013 at 4:36 pm #

    In 2012 I worked for a few months for a company where I chose to contribute some of my salary to an FSA (Flexible Spending Account).

    I did not eventually use that money.

    Do I specify my contributions to that FSA in the 1040 lin2 25?

    Do I mention it at all anywhere in my 1040? (I do not plan to itemize deductions for 2012).


  53. Dee May 5, 2013 at 3:30 pm #

    Does anyone know if it is against the law to buy products with your FSA card and then return them for store credit to use to buy other things?

  54. Stan May 5, 2013 at 5:02 pm #


    I am looking to upgrade my current FSA Megaexo BB6000 to a ceramic set. I was wondering if any of the BB from SRAM, shimano or the FSA ceramic BB8000 would be compatible with my current FSA gossamer compact crank (the FSA website says their Ceramic BB fits the SLK and K-Force, and doesn’t list Gossamer).

    Would I have to upgrade my crankset as well?

    Any opinions and advice would be great!



  55. Thanh May 5, 2013 at 11:20 pm #

    I want the Clear Blue Easy Fertility Monitor but it does not have the FSA logo by it. Would it still be covered? I think it would be but I am not positive.
    they have a cheaper brand of sticks that is marked fsa. oh, well. I just ordered on line with flex card so I guess I will find out soon.

  56. Rafael May 10, 2013 at 12:59 pm #

    I have over $240 left on my flexible spendings account that I need to use before January 1st. Well, I went to the store to buy a whole bunch of over the counter items, and the FSA card only paid for $150.00 I paid for the rest in cash, not sure if some items were not elegible or something. When I looked at the receipt, some items like gauze pads, were marked as not eligible. Does my FSA card only allow 150 dollars per transaction, or what happened?

  57. Sana May 13, 2013 at 10:00 am #

    I was given a few questions to investigate in my work, I was wondering if anyone could help or point me to a good website for collecting info?

    1. Explain the key changes to the FSA Conduct of Business rules as a result of the introduction of MiFID?

    2. Explain the key points of the FSA’s “Treating Customers Fairly” Initiative?

    Thanks in advance.

  58. Morton May 15, 2013 at 4:21 am #

    FSA vs SAA
    FSA stands for free Syrian army what does SAA stand for?
    Why are they fighting and killing each other?
    Who are the bad guys and good guys? is fsa the bad ones for video taping the killings?
    Why did it start?

  59. Tracy May 20, 2013 at 2:49 am #

    I am applying for a FSA USDA youth farm loan. It is 5000 dollars. How long will they give me to pay it back?

  60. Isreal May 20, 2013 at 8:53 am #

    IF Russia & China allow deployment and use of these weapons, how would the US & N.A.T.O. retaliate? FSA is now seeking & targeting CW sites in Syria.

  61. Tana June 15, 2013 at 11:02 pm #

    During open enrollment I elected to contribute $2000 to a flexible spending account. There was a mistake made after the grace period, and now the monthly contribution is going into a dependent care FSA. I have reached out to HR and the Benefit provider, which both say I am screwed for the year and can only change during next years open enrollment. 1) I am single with no kids 2) they are saying that we never had medical FSA. Is there any provision or form I can fill out to correct this mistake?

  62. Noemi August 1, 2013 at 9:54 pm #

    Employee used full fsa/cafe 125 medical at beginning of year then terminated employment mid year before all deductions from check were paid. Employer deducted over 400 from last check. Is this legal? If not who do you contact to file a greivance. The employer will not even respond to the employee after the initial contact. Their reponse then was it
    is thier policy to deduct from final check. Employee was never made aware of this policy

  63. Terese August 8, 2013 at 12:02 pm #

    As all FSA regulated companies require prospective employees to provide proof of right to work in the UK (Usually by passport or Birth Certificate) can an expired passport be used as it does still proove citizenship? I’m afraid I require a legally substantiated answer. Many thanks.

  64. Tammi September 10, 2013 at 2:05 pm #

    So i bought a 52t FSA chainring and I never asked myself if it would fit on my crank arms from a 46t chainring. Problem is, its much bigger and can’t be bolted on to the star part of the crank arms where its supposed to go. Also i cant find any measurements on how to get new crank arms that will fit it, how do i know what will fit it and what wont? Help is much appreciated.

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