FSCS declares five mortgage advice firms in default
Share
The Financial Services Compensation Scheme has declared five mortgage advice firms in default, including failed mortgage network Network Data.
The four other mortgage firms in default are PMSG Insurance Services Limited (also trading as Professional Mortgages Services Group), Financial Quest UK Limited, Finance Direct (UK) Limited, First Class Mortgages Limited.
The move opens the door to compensation claims from clients who have lost money through their dealings with these firms.
The FSCS says that 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 January 1 2010 is 100 per cent of the first £30,000 and 90 per cent of the next £20,000 up to £48,000 per person per firm.
However, if a firm was declared in default on or after January 1 2010 the new compensation limit is 100 per cent of the first £50,000 per person per firm.
FSCS director of operations Kate Bartlett 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 instill confidence in the financial services sector by ensuring consumers get the compensation they are entitled to when this happens.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (4)
Glyn | 14 Apr 2010 2:12 pm
“The FSCS helps to instill confidence in the financial services sector by ensuring consumers get the compensation they are entitled to when this happens.”
No it doesn't, it encourages irresponsible behaviour, and rides roughshod over caveat emptor.
But it helps fuel the increasing demands for levies.
Unsuitable or offensive? Report this comment
Incompetent Regulators Award Team | 14 Apr 2010 3:01 pm
With the impending elections and possibility of a Conservative gvt, maybe all firms should not pay at all as the Tories have said they will break up the F-Pack! Then the FSCS can't do anything,,,,,,,,,,,,,,,,,,there's a thought!
Unsuitable or offensive? Report this comment
Pissed Off IFA | 14 Apr 2010 4:21 pm
Once again IRAT are on the button. I think they should be made the new regulators of the Financial Services Authority.
Look forward to hearing more from you.
Keep up the good work! Incompetent Regulators Award Team rule OK!
Unsuitable or offensive? Report this comment
Dave Chaundy | 16 Apr 2010 10:44 am
Careful IRAT -- The Tories have said that they will disband the FSA -- they have said nothing about getting rid of the FOS or restructuring the FSCS. They have also said that the RDR will continue under the umbrella of the new 'Consumer Body' that replaces the FSA.
SO to paraphrase what the Tories have said -- Only the names will change - the content remains the same!
Unsuitable or offensive? Report this comment