The Financial Conduct Authority (FCA) said it will launch a publicity campaign later this month to inform people about the Aug. 29, 2019 deadline for claiming compensation for mis-sold payment protection insurance (PPI).
Lloyds, Barclays, RBS and other banks have already paid out more than 27.4 billion pounds ($35.2 billion) in compensation up to May this year, and in July Lloyds set aside a further 700 million pounds for claims.
The FCA said the campaign is being funded by 18 firms that together receive more than 90 percent of complaints about PPI.
"We asked these firms to make a range of improvements to the way people can complain to them about PPI, ahead of the launch of our campaign on 29 August 2017," the FCA said in a statement on Wednesday.
"The improvements should make it quicker and easier for people to complain about PPI or check if they've had it."
The watchdog has asked the firms to redevelop parts of their websites to make it easier for people to complain directly online using a simple, straightforward form.
Many people have used claims firms, who take a slice of the compensation awarded.
Banks and others who sold PPI must also be able to deal with complaints about the high level of commission they earned from some sales of the loan insurance. This follows a Supreme Court case known as Plevin.
"We have already reviewed and challenged the commission rates and profit share sums that larger firms will be using to assess complaints about commission they earned," the FCA said.
Once the campaign has been launched, the watchdog will monitor customer satisfaction to see if complaints are being dealt with fairly and promptly.
(Reporting by Huw Jones, editing by Pritha Sarkar)
By Huw Jones