Path cleared for mortgage advice compensation - Mortgages - News - Moneyfacts


Path cleared for mortgage advice compensation

Path cleared for mortgage advice compensation

Category: Mortgages

Updated: 14/04/2010
First Published: 14/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The Financial Services Compensation Scheme (FSCS) has declared five mortgage advisors in default, clearing the way for people who lost money as a result of their dealings with the firms to claim compensation.

By declaring PMSG Insurance Services, also trading as Professional Mortgages Services Group, Financial Quest UK, Finance Direct (UK), First Class Mortgages, and Network Data in default, the FSCS said it meant the firms were unable or likely to be unable to pay claims against them, triggering FSCS protection for their customers.

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 1 January 2010 is 100% of the first £30,000 and 90% of the next £20,000, up to £48,000 per person per firm.

However, if a firm was declared in default on or after 1 January 2010, the new compensation limit is 100% of the first £50,000 per person per firm.

"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," said Kate Bartlett, FSCS director of operations.

"The FSCS helps to instill confidence in the financial services sector by ensuring consumers get the compensation they are entitled to when this happens.

"People who believe they may have a claim against the firms should contact the FSCS on 0800 678 1100 or 020 7892 7300, or by email at"

Find the best mortgage for you - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.