During 2013 and 2014, the Financial Services Compensation Scheme (FSCS) have reported fewer Payment Protection Insurance (PPI) claims than the previous year.
This suggested that PPI claims coming to the FSCS had peaked, with about 12,000 in the 2013/14 period compared to around 19,000 the year prior.
The Financial Services Compensation Scheme protects consumers when authorised financial services firms go bust. Since 2001, it has come to the aid of more than 4.5 million people while paying out billions of pounds in compensation.
According to its latest Annual Report and Accounts, the UK statuary compensation scheme (FSCS) paid out £243 million in compensation to consumers in 2013/14. It protected more than 34,000 people during the year.
In total, the scheme received more than 39,000 new claims in 2013/14, against 62,000 the year before.
FSCS Chief Executive, Mark Neale explains a little more about the service by saying:
“FCSC is there for consumers when authorised financial services firms go bust. Last year we paid out more than £240m in compensation. However that statistic masks the human story of thousands of people who had nowhere else to turn when firms failed or had a PPI mis-selling claim. Or they may have been given bad investment advice. FSCS protects a wide range of financial services; consumers are our top priority, and our annual report for 2013/14 is a chronicle of how we helped consumers during the year.”
He adds: “Our top priority is to provide a responsive and efficient service to people who lose money as a result of authorised financial services firms failing. We’re continuously improving our processes to people a better service. This includes modernising our claims handling process with, in the near future, an online facility through the FSCS website for consumers to make and track a claim. This will help us to improve our service for consumers while, at the same time, improving operational efficiency. It is key to providing the kind of service consumers and the industry expect. It is at the heart of the FSCS protection which boosts consumer confidence.”