Welcome FS sets aside £110m in redress for PPI claims
Share
Welcome Financial Services has set aside £110m to compensate customers who were mis-sold payment protection insurance by the firm.
Welcome has just agreed a scheme to restructure its debt which will see it bought by specially-created company Bovess.
It has been declared in default by the Financial Services Compensation Scheme because the firm is unable, or likely to be unable, to pay claims against it in relation to PPI.
But as part of the restructure it has come to an arrangement with the FSCS to compensate those mis-sold PPI.
Customers who took out a PPI policy with the firm on or after January 14 2005 can make a claim through the FSCS.
A spokeswoman for the FSCS says Welcome has given it £50m and is due to hand over a further £40m as redress, but the end sum could be higher.
Welcome has also established a trust fund of £20m as redress for customers sold pre-regulated policies before January 14 2005, which the FSCS does not cover.
The firm is assisting the FSCS in its handling of the claims and has applied to the Financial Services Authority for a variation of its permission to do so.
The sub-prime lender, part of the Cattles Group, stopped lending in 2009.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
Readers' comments (3)
jake gosser | 3 Mar 2011 3:58 pm
registered a complaint with Welcome Finance before Christmas, filling out the questionaire designed by the ombudsman. Have had letters saying they are still investigating but this was weeks and weeks ago? Does this mean i will have to register another complaint? Not easy as they lose my letters, ignore my e mails and have me hanging on the phone forever with no reply. Any help welcome (no pun intended)
Thanks
Unsuitable or offensive? Report this comment
Mary Louise | 4 Mar 2011 12:30 pm
Submoitted my claim to the mortgage compensation scheme with regards to a 2nd charge. I hope this goes in my favour.
Unsuitable or offensive? Report this comment
Dawn Angela | 29 Mar 2011 7:31 pm
Spoke to Welcome this afternoon, basically for all loans taken out after 15.01.2005 they (on behalf of the fscs) are sending out fscs application forms. So if your loan was after then you should receive a form. If your loan was pre 2005 you may want to ring and ask as I understand they've sent aside £110m to deal with these.
Unsuitable or offensive? Report this comment