More than half of those who were mis-sold payment protection insurance (PPI) could be yet to make a claim for compensation, the Financial Conduct Authority claimed today.

With two years to go until its final deadline of 29 August 2019 to bring a claim, the FCA is to begin a major advertising campaign urging people to act.

Banks have already paid out £27bn, and set aside more than £37bn, to reimburse those who were sold PPI to cover loan and credit card repayments. Mis-selling arose through premiums being added to bills without customers being told in advance, or people being sold products unsuited to their circumstances or which they did not need.

It is estimated that up to 64m policies were sold in the UK, with total premiums of £44bn, not all of which would have been mis-sold. Some 12m people have successfully claimed repayment of their premuims, with added interest.

The FCA said that many people may still be unaware that they had PPI and urged people to check any paperwork relating to past loans or credit cards.

A dedicated call centre is to be set up as part of the FCA's new campaign. Consmer groups are encouraging potential claimants to go direct to the bank concerned, rather than use a claims management company which would take a percentage of any award, as claims are free.