PPI and investment claims dominate FSCS workload
by Gill Montia
Story link: PPI and investment claims dominate FSCS workload
The Financial Services Compensation Scheme (FSCS) paid out £204 million to over 21,000 claimants during 2009/10, with over two-thirds of the payments made for Payment Protection Insurance (PPI) and investment claims.
PPI claims increased significantly during the year, to exceed 2,400, and the FSCS says it expects the volume of claims in this area to climb further during 2010/11.
The hike in investment claims resulted from more claims against brokers, many of which involved complex issues, although the majority related to one firm: Keydata Investment Services.
Over the year, the FSCS completed the validations of the amounts paid to fund the transfers of deposits with Bradford & Bingley, Heritable Bank and Kaupthing Singer & Friedlander.
Recoveries of £1.06 billion have been made from the failed savings and investments providers.
The FSCS will also contribute to the cost of the near collapse of Dunfermline Building Society and has made initial provision of £400 million.
From the beginning of 2011, the Scheme will be making payouts to savers within seven days of a provider failing, and in January will be launching a campaign to raise public awareness of its work.