Press
FSCS to help bankrupt firms' clients
by Joy Dunbar
FinancialAdviser 10th December 2009
Three mortgage brokers have been declared to be in default by the Financial Services Compensation Scheme.
customers who have lost money through dealings with Nottingham-based Goldsmith Financial Adviser Ltd, Cambridgeshire-based Diamond Lifestyle Ltd, or Weston-Super-Mare-based P. Hilder, trading as Savings Assured Mortgages, could now claim up to £48,000 if their claim relates to home finance advice or arranging.
Loretta Minghella, chief executive of the FSCS, said its role is to help people who have lost money as a result of doing business with an authorised firm if that firm is unable or likely to be unable to meet claims made against it.
She said: "The existence of the FSCS helps to instil confidence in the financial services sector by ensuring consumers can get the compensation they are entitled to when a firm fails.
"We have started paying claims against these firms and are here to help anyone else who has a valid claim."
James Carter, principle of London-based adviser Independent James said: "The Association of Mortgage Intermediaries said a few weeks ago said that there were 30,000 advisers at the peak and at the moment there are 13,000.
"That could go down to 10,000 next year which is quiet scary. It does not surprise me at all. In January you have your tax bill to pay and other fixed outgoings it would not surprise especially those involved in adverse and self cert mortgages."