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FSCS gives Capita £37m claims handling contract

Telephone-Phone-Business-Finance-General-700.jpgThe Financial Services Compensation Scheme has chosen outsourcing firm Capita to manage its claims handling service in a contract worth £37m.

FSCS claims handling processes were previously provided by three suppliers, including Capita.

Under the terms of the contract, all services relating to the FSCS’s claims handling and customer services will be managed by Capita for the next four and three-quarter years.

Earlier this month, the FSCS said it needed around £71m more than was forecast for 2018/19, with bills having being driven upwards by the British Steel pension saga and other impending claims over defined benefit pension transfers.

FSCS declares DFM that lost judicial review appeal in default

The agreement with Capita start from July. It also has the option of extending the agreement for up to two more years.

FSCS chief operating officer Jimmy Barber says: “This underpins our work to transform the customer experience, through investment in technology and digital development, and adds improved resilience through scale.”

The agreement with Capita will also mean the FSCS can shift to prioritise digital development.

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Couldn’t make it up. At least outsourcing is more efficient though – at delivering profits for the service provider at the expense of poorer service and higher costs for the people paying them. But as the people paying them have no say in how the service is run, who cares!

  2. Spot on Clive

    Barge pole!

  3. What a coincidence. A company called Capita paying compensation in respect of Connaught and a company called Capita profiting by dealing with compensation claims against firms that have gone bust

  4. You’re right Clive! How many readers would do business with a company that has made a huge loss and had three profit warnings last year. Capita made a £500m loss and has had to go to the market with a £750m share issue. Unbelievable.

  5. Someone’s nicked my Hob Nob!

  6. In the FSCS contract for services it says:

    “Supplier undertakes to FSCS that:

    Supplier will provide independent and unbiased advice to FSCS”

    Presumably they would recuse themselves if that became an issue.

  7. David Cathcart 15th May 2018 at 7:08 pm

    Capita reputation for appalling administration is legendary, ask any insurance company who have had the misfortune of outsourcing their admin them.
    You can the headlines in a couple of years “FSCS replace Capita due to continuing errors and backlogs”

  8. derek bradley 17th May 2018 at 9:19 am

    “This underpins our work to transform the customer experience.

    So the compensation industry now become a creator of ‘customer experiences’.

    Given comments below, will Capita become the financial version of Carillion?

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