Consumers could claim up to £48k in compensation after FSCS steps in

Consumers can claim compensation of up to £48,000 if they have lost money as a result of their dealings with any one of 28 firms that the Financial Services Compensation Scheme (FSCS) has recently declared in default.

FSCS is the UK’s statutory fund of last resort for customers of regulated financial services firms. The service is free to consumers.

Declaring a firm in default is the final part of a process whereby a regulated firm (such as a financial adviser) has been found by FSCS to be unable to pay claims. This means that customers who have lost money as a result of dealings with one of these firms can make a claim for compensation to FSCS.

"FSCS helps protect consumers against financial loss when the firm they dealt with has ceased trading and is unable to pay claims against it," says Loretta Minghella, Chief Executive. “It is important that we let consumers know that FSCS may be able to help if they have lost money and the firm can’t pay.”

The kinds of investment claims FSCS handles usually relate 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. FSCS can also pay compensation for financial loss arising from negligent investment management and fraud, or if an authorised investment firm stops trading and cannot return its customers’ investments or money.

Consumers who believe they may have a claim should contact the Scheme on 020 7892 7300, or by email at enquiries@fscs.org.uk . Further information about FSCS’s work is available from its website at fscs.org.uk.