LOAN PAYMENT PROTECTION INSURANCE MIS SELLING COMPENSATION CLAIMS

The Financial Services Compensation Scheme (FSCS) which became operational on 1 December 2001 is an independent body set up under the Financial Services and Markets Act 2000 and is a fund of last resort which will pay compensation to consumers of financial products if a firm is unable to pay any claims made against it, including loan payment protection insurance mis selling compensation claims. The FSCS covers business conducted by firms authorised by the Financial Services Authority which regulates financial services in order to protect consumers. The FSCS covers these issues however claims are usually only made to the FSCS when the firm is ‘in default’ of payment of compensation following a recommendation from the Financial Ombudsman Services due usually as a result of insolvency. The FSCS aims to

“provide a high quality compensation scheme that is efficient, fair, approachable and responsive; and, where appropriate, to work proactively with insolvency practitioners and other persons and organisations in securing cost-effective redress for claimants and delivering compensation.”

Loan payment protection insurance mis selling compensation claims should initially be the subject of a written or oral complaint containing the grounds for the application made directly to the firm that sold the insurance policy if that firm is still trading. If the claim is not time barred and is not settled satisfactorily then an application can be made to the Financial Ombudsman Service and the matter may thereafter be referred to the FSCS who will settle claims both for individuals and for small business with an annual turnover of less than £1,000,000. There are certain complex regulations within the scheme which means the FSCS may not be able to cover the entire loss in an investment transaction.

The FSCS has a detailed complaints procedure for those individuals or firms that are unhappy with any decision on loan payment protection insurance mis selling compensation claims. Any complaint is initially passed to a manager for investigation unless that manager was involved in the initial problem in which case the complaint will be investigated by an alternative person of similar status. If the complaint is about a manager it will be investigated by the Chief Executive and if the complaint is about the Chief Executive it will be referred to the Chairman to deal with at his discretion. Upon receipt of a complaint the FSCS must acknowledge receipt within three working days. Within ten working days a manager at the FSCS must write to the complainant advising the result of the investigations however if the investigations are likely to take longer than ten days then the complainant must be updated every ten days until the investigation is completed. If the complainant is not satisfied with the outcome and conclusions of the investigation the matter is referred to the Chief Executive for review and thereafter the matter may be referred to an Independent Investigator.

Our independent network of lawyers, financial advisers and insurance experts work together as a specialist team to settle loan payment protection insurance mis selling compensation claims. Our professionals only deal with cases on a risk free no win no fee basis and if the complaint is unsuccessful for any reason they will make no charge whatsoever. You will not be asked to fund or finance your application in any respect and you will not have to buy insurance or take out any loans. Our clients never pay any charges unless the claim is settled successfully. If you would like to speak to a specialist just complete the contact form or call the helpline and one of our experts will discuss your potential claim without any further obligation.