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Path cleared for mortgage advice compensation

Path cleared for mortgage advice compensation

Category: Mortgages

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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 enquiries@fscs.org.uk."

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