FSCS steps in to protect mortgage victims

Saturday 17 April 2010 19:00 EDT
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Consumers can now claim compensation if they have lost money as a result of their dealings with five mortgage advisers, the Financial Services Compensation Scheme (FSCS) has said.

The FSCS is stepping in to protect people who may have lost money as a result of dealings with PMSG Insurance Services, also trading as Professional Mortgages Services Group, Financial Quest UK, Finance Direct (UK), First Class Mortgages, and Network Data.

Declaring firms in default may mean they're unable to pay claims against them, which triggers FSCS protection for customers.

Due to a recent change in the compensation limits, the maximum amount consumers can claim varies. For firms declared in default before 1 January 2010, it is 100 per cent of the first £30,000 and 90 per cent 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 per cent of the first £50,000 per person per firm.

Kate Bartlett, the FSCS's director of operations, says: "People who believe they may have a claim should contact the FSCS on 0800 678 1100 or by email at enquiries@fscs.org.uk."

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