< Back to previous page

FSCS declares £50,000 compensation threshold

Published on 26 Apr 2010 under category: legal

Consumers who have lost money from poor advice given by firms in default will now be able to claim around £50,000 back from a statutory compensation scheme.

The Financial Services Compensation Scheme (FSCS) has said that it will now pay up to £50,000 in compensation for firms that have gone into default since January 1st this year.

Those seeking money for losses before this period will either be eligible for up to £30,000 or 90 per cent of the next £20,000 up to £48,000.

Just below 40 firms across England, Wales and Scotland have been declared to be in default.

Alex Kuczynski, interim chief executive said: "It is important that we let customers know that we may be able to help if they have lost money and the firm cannot pay.

"The FSCS's existence as a fund of last resort for consumers helps to maintain confidence in the sector by providing assistance to individuals who have suffered a financial loss who otherwise would have nowhere to turn."

If you require advice on Professional Negligence please call us on +44 (0)20 7831 0101 and ask for Peter Mellett.