Charterhouse Claims Ltd had sent emails to customers that said: "Banks suggest PPI end date. Don't miss out on £1000's, claim NOW!"
But Lloyds Banking Group took the claims management firm to task over its claim that there was a looming deadline for PPI claims.
LBG challenged the claim with the Advertising Standards Agency claiming the ad was misleading and could not be substantiated.
But Charterhouse countered and said it had launched its campaign following well documented discussions between the British Bankers Association and the Financial Services Authority.
The claims management firm claimed that these discussions had seen to the tactic of 'Time Barring' be universally approved by the FSA.
However, whilst the ASA acknowledged that Charterhouse had provided documentation backing up its claim it could not find any evidence that PPI complaints to the Financial Ombudsman Service were being time-barred.
As such the ASA upheld Lloyds complaint and ordered Charterhouse to no longer stop running its campaign.
