FSCS warning over copy-cat - Savings - News - Moneyfacts

News

FSCS warning over copy-cat

FSCS warning over copy-cat

Category: Savings

Updated: 01/06/2012
First Published: 01/06/2012

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 It is now over 6 months old so the content may be out of date.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 warned consumers that a claims management company is using its initials in its online advertising.

The scheme fears that the campaign could confuse consumers, ultimately leaving them out of pocket.

The copy-cat company uses the acronym, fscs, in online search advertising promoting its services, and is a claims management company that is seeking payment protection insurance claims (PPI) from consumers.

The compensation scheme said it is in no way connected to the company which charges for its services, whereas the FSCS is free to consumers.

These companies take up to 25% of the compensation FSCS pays for PPI claims. Yet consumers still have to provide the same information to the scheme. Applying for compensation from FSCS is a simple process that does not require any special skills.

With the average pay-out to those going via a claims management company being £4,534, a quarter of this is more than £1,133.

In the case of the company concerned, the fee is 20%. That means people will lose about £906 on an average claim.

The FSCS has recently warned consumer against the use of such firms.

"Paying a third party to submit a claim does not significantly increase the chances of receiving compensation either," it said.

"The number of successful claims made by individuals is almost the same as for those made by third parties."

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.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

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close