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FSCS pays out £150m in 2006/07

The Financial Services Compensation Scheme paid nearly £150m in compensation during 2006-2007.

The FSCS says it completed more than 31,200 claims and spent just under £27.2m on management expenses.

The initial budget for the year was £29.37m with an estimated 28,150 claims for the year – an increase of 21 per cent compared to the previous year.

FSCS Chief Executive Loretta Minghella says: “I am particularly pleased to report this year that the strategies we put in place two years ago to deal with rapid increases in claims volumes have worked. The backlogs are all but gone, and we are dealing with the majority of claims much faster and under budget.”

Total compensation paid to consumers during the year was £149.47m. 88 per cent of claims received by the FSCS last year related to mortgage endowments. 86 per cent of new endowment claims were handled within six months of receipt. The average compensation paid to endowment claimants was £1,900.

Minghella says: “2006/07 was the first year in which we published clear service standards and challenging targets against which we could be measured. We managed to achieve many, although not all, of these targets, so there is further to go. I hope the results demonstrate our commitment to our mission: to provide an effective and efficient compensation service.”


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