Any consumer who has lost money as a result of their dealings with one of the 34 firms which the FSCS has declared to be in default is able to submit a claim for compensation which could result in a pay off of up to £48,000.
Declaring a firm in default is the final part of a process in which a firm regulated by the Financial Services Authority (such as a financial adviser) has been found by FSCS to be unable, or likely to be unable to pay claims against it.
This means that customers who have lost money as a result of dealings with one of these firms might be able to make a claim for compensation to FSCS.
“It is important that consumers know that FSCS may be able to help if the firm they dealt with can’t help,” says Loretta Minghella, FSCS chief executive.
"The existence of a fund of last resort for consumers maintains confidence in the sector and provides help to individuals who have suffered a financial loss who otherwise wouldn’t have anywhere to turn.”
The free service covers investments, deposits, insurance, mortgage advice and arranging (from 31 October 2004), and advice about general insurance and the arranging of policies (from 14 January 2005) - with claims handled typically relating to advice
For example, if somebody has been advised to buy an investment product such as an endowment policy, but it was unsuitable for them and they have lost money as a result of the advice they received.
Consumers who believe they may have a claim should contact FSCS on 020 7892 7300, or by email at [email protected].
A list of the 34 companies and further information about how to claim is available from its website at www.fscs.org.uk.
