Role Of The Financial Services Compensation Scheme

26/03/2011 by admin.

With more and more banks and brokers going bust, the role of the Financial Services Compensation Scheme (FSCS) is becoming more prominent.  The FSCS will look into financial misselling cases where the customer is seeking compensation from a financial institution that has gone into liquidation and is unable to make any compensation payments itself. 

A recent example of this is are the ppi complaints being received for Welcome Finance. On 8th March 2011 Welcome Finance was declared in default so all ppi claims are now being handled by the FSCS on their behalf.  Once the FSCS receive a ppi claim the obviously cannot contact the seller, but they will make an attempt to contact the PPI policy underwriter and administrators if possible. From here they gather as much evidence of the ppi complaint as possible and make a decision.  

Should they find in favour of the client, the FSCS can pay up to 90% of the compensation the client may have received should they have been able to direct their ppi claims to the bank.  This situation is not unusual and is used more and more by consumers as an increasing number of banks go into liquidation. Some major high street names include Yes Loans and Picture Loans.  

Submitting your ppi complaints and getting back 90% of what you are due is better than nothing although it does take some time and effort. To being with the FSCS will send the person making the ppi claims a questionnaire to complete. The consumer then needs to send this back to the FSCS with all the supporting evidence they can find. This is something quite difficult as the sale of the finance and PPI policy could have been sometime ago. 

This is where is can be good to engage a specialist ppi claims company like Claimline Legal. Claimline Legal has extensive experience when dealing with the FSCS. They can request the correct ppi complaints forms for you, discuss all aspects of your ppi claims and help you complete the forms correctly.  Finally, they can professionally package your claim and liaise with the FSCS ensuring your ppi complaint is dealt with in the quickest possible time.

As a final point it should be noted the FSCS can take several months to review any claims so using a ppi claims specialist is worthwhile. If you have a claim for missold PPI contact Claimline Legal on 0800 779 7457 or online at www.claimlinelegal.co.uk

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