HSBC has been added to the list of banks allowed extra time to deal with payment protection insurance (PPI) complaints.
Under normal rules, banks which have been contacted by customers who believe they have been mis-sold PPI have eight weeks to respond.
On Monday, however, the Financial Services Authority, which regulates the banks, revealed it had temporarily extended the amount of time Barclays, Lloyds Banking Group and RBS have to deal with the complaints.
The regulator said it wanted to make sure the banks had adequate time to handle the complaints properly given the backlog that had built up and the high volume of new complaints still arriving.
HSBC has now been added to the list, but must abide by the same time frames.
Under the agreement, PPI complaints which the banks put on hold during the judicial review must be settled by the end of August.
Complaints received after the review and before 31 August will have to be responded to within 16 weeks.
Any complaints received on or after 1 September and before 31 December 2011 will need a response within 12 weeks, before the normal eight week deadline resumes.
Barclays has already promised to compensate all customers to whom it sold PPI and who made a complaint before 20 April.
The bank has decided to repay customers all their premiums plus interest of 8%.
Any complaints the bank received after the automatic reimbursement date of 20 April will be reviewed 'on merit'.
Anyone who thinks they have been mis-sold PPI have been advised to complain direct to their bank and avoid costly claims management companies.
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