Help is Sometimes at Hand
Today I’ve been having a poke around the Financial Services Compensation Scheme Website (FSCS). The FSCS came into force in 2001 as part of the 2000 Financial Services and Market Act (FSMA).
The FSCS provides compensation to people who have lost money through companies who were previously regulated by the FSA, but have since been found to be ‘in default’. In this context ‘in default’ means that the company is unlikely to be able to pay compensation off its own back - this will probably be because it has ceased trading or is insolvent. The funds the FSCS use for compensation come from levies it charges to people regulated by the FSA.
The types of things you may have lost money on are deposits (e.g. a Bank saving account), mortgages, investments and most types of insurance.
The FSCS website is pretty slick and easy to navigate, it includes things like :-
A list of companies the FSCS deems to be ‘in default’. This section of their website also includes a section where you can key in a company name to check if it is ‘in default’.
Another area of the website gives you the limits for each type of claim and the website also includes an interactive flowchart, which aids you in deciding whether you have a valid claim. However the bottom line is that if a firm is deemed ‘in default’ you can claim, but if it is still trading you need to approach the Financial Ombudsman to help with a claim.
