More than £204m paid out in compensation by FSCS

Category: Money
Date: 7/22/2010

Consumers were paid out to the tune of more than £204 million by the Financial Services Compensation Scheme in 2009/10.

Almost 31,600 claims were made to the scheme over the 12 months, a significant rise of 185% from 2008/09.

The number of claims that the FSCS completed over the period rose by 100% to 21,802.

Two thirds of the compensation paid during the year was for Payment Protection Insurance (PPI) and investment claims.

The FSCS said the number of PPI claims increased markedly in the year to more than 2,400 and that it expects the numbers of claims in the area to grow further in 2010/11.

The increase in investment claims came as a result of claims against brokers, with many involving complex issues the FSCS had to resolve.

Over 15,000 claimants were paid, the majority of which were related to Keydata Investment Services Limited.

The scheme also revealed that it will be able to make certain payouts within seven days from the beginning of 2011, and it is to launch a campaign to raise public awareness of the FSCS in January.

"The FSCS achieved a huge amount in 2009/10," Mark Neale, FSCS chief executive said.

"We completed a large number of claims, resolved outstanding issues from the banking failures, and made significant investment in response to the demands for faster payout and our increased responsibilities.

"The report demonstrates the vital service the FSCS provides to consumers and the benefits that it brings to the industry in delivering consumer protection and promoting consumer confidence

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