FSCS declares three mortgage brokers in default
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The Financial Services Compensation Scheme has declared three mortgage and general insurance intermediaries in default, paving the way for customers of these firms to make a claim for compensation.
A declaration of default means the firms are unable, or likely to be unable, to pay claims against them and triggers FSCS protection.
Customers who have lost money through dealings with Goldsmith Financial Adviser Ltd, Diamond Lifestyle Ltd, or P. Hilder trading as Savings Assured Mortgages could now claim up to £48,000 if their claim relates to home finance advice or arranging.
Customers with claims against the firms relating to insurance advice or arranging may be eligible for 100% of the first £2,000 and 90% of the balance of their claim, with no upper limit.
The FSCS also says former customers of five insurance intermediaries may be entitled to compensation.
The firms, which specialised in arranging and advising on general insurance policies, have been declared in default and the FSCS has now started paying claims against them.
Customers who lost money through dealings with any of the following five firms may be eligible for 100% of the first £2,000 and 90% of the balance of their claim, with no upper limit.
The firms are Suma Securities Limited (Trading As Willow Finance and others including Albany Finance, Cash Galore, Loans Galore, Money Galore and Mortgage Galore).
Twopart Limited, Asset Loans Limited, LL Processing (UK) LTD and Loanmaker Limited.
Loretta Minghella, chief executive of the FSCS, says: “FSCS’s 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 beunable to meet claims made against it. 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.”
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