The Financial Services Compensation Scheme (FSCS) could provide a lifeline to consumers that have lost money as a result of their dealings with any of the 50 failed financial firms around the UK that FSCS has recently declared in default.
The Scheme has already started paying compensation in respect of the defaulted firms. Mark Oakes, Head of Communications for FSCS says "FSCS was established to protect consumers when authorized financial services firms go bust. It protects your deposits, investments, home finance and insurance. If anyone believes they may be owed money as a result of their dealings with any of these firms, please get in touch with FSCS, as we may be able to help you."
Since inception FSCS has come to the aid more than 4.5m people, paying out more than £26bn in compensation.
FSCS is the UK’s statutory compensation scheme for customers of regulated financial services firms.
A declaration of default means FSCS is satisfied a firm is unable to pay claims for compensation made against it, and opens the way for customers of that firm to make a claim. FSCS is free for individual consumers to use.
FSCS was set up by Government in 2001 and is funded by the financial services industry. FSCS protects insurance, investments, deposits and mortgage advice and arranging.