FSCS declares five mortgage advice firms in default

Consumers across the UK can now claim compensation if they have lost money as a result of their dealings with five mortgage advisors the Financial Services Compensation Scheme (FSCS) has declared in default.

The FSCS is stepping in to protect individuals who may have lost money as a result of dealings with mortgage advisors PMSG Insurance Services Limited also trading as Professional Mortgages Services Group, Financial Quest UK Limited, Finance Direct (UK) Limited, First Class Mortgages Limited, and Network Data Limited.

Declaring the firms in default means they are unable or likely to be unable to pay claims against them and triggers FSCS protection for their customers.

Due to a recent change in the compensation limits, the maximum amount that consumers may be able to claim varies. For mortgage advice and arranging the maximum level of compensation for claims against firms declared in default before 1 January 2010 is 100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per person per firm. However, if a firm was declared in default on or after 1 January 2010 the new compensation limit is 100% of the first £50,000 per person per firm.

Kate Bartlett, Director of Operations, says: "The FSCS's role is to help people who have lost money as a result of doing business with an authorised firm that is unable or likely to be unable to meet claims made against it. The FSCS helps to instil confidence in the financial services sector by ensuring consumers get the compensation they are entitled to when this happens. People who believe they may have a claim against the firms should contact the FSCS on 0800 678 1100 or 020 7892 7300, or by email at enquiries[at]fscs.org.uk."