UK Financial Services Compensation Scheme declares 6 firms in default in July 2019

Maria Nikolova

Consumers are set to get back money lost as a result of their dealings with any of the six failed firms the FSCS declared in default in July 2019.

Consumers could get back money they have lost as a result of their dealings with any of the six failed regulated firms the UK Financial Services Compensation Scheme (FSCS) declared in default in July 2019. This compares with 11 firms declared in default by the Compensation Scheme in June 2019.

The list of firms declared in default by FSCS in July 2019 includes:

  • Omega Financial Solutions Limited, Allen House, 1 Westmead Road, Sutton, Surrey, SM1 4LA North West
  • Breterac Limited formerly Fenton Finance Limited, New Chartford House, Centurion Way Cleckheaton, Bradford, West Yorkshire, BD19 3QB
  • Premier Mortgage Centre (UK) Limited, 69 Meneage Street, Helston, Cornwall, TR13 8RB
  • Luddington Broze Limited, Higher Lands Farm, Seaton, Devon, EX12 3BL
  • Leech & Burgess IFA LLP, 36 New Street, The Barbican, Plymouth, Devon, PL1 2NA
  • Westbury Capital Partners Limited t/a The Insurance Business t/a Westcap, 5 Barnfield Crescent, Exeter, Devon, WX1 1QT

Alex Kuczynski, Chief Corporate Affairs Officer at FSCS, said: “FSCS steps in to protect consumers around the UK when authorised financial services firms go bust. This vital service, which is free to consumers, protects deposits, insurance, investments, home finance and debt management. We want anyone who believes they may be owed money as a result of their dealings with any of these firms to get in touch as we may be able to help you.”

A declaration of default means FSCS is satisfied a firm is unable to pay claims for compensation made against it. This paves the way for customers of that firm to make a claim for compensation with FSCS.

Before FSCS can pay compensation, it has to make sure that a firm does not have sufficient assets to meet claims. This is described as the firm being “in default”. FSCS will declare a firm in default if:

  • it has received at least one claim; and
  • it is satisfied that the financial services firm you did business with has failed and is unable to return your money itself (the company is ‘in default’).

According to FSCS’s 2018/19 Annual Report, the Scheme paid a total of £473 million in compensation to 425,760 customers of failed firms during 2018/19. This amount compares with the £405 million FSCS paid in compensation in the previous year.

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