Mortgage endowments still largest source of claims
Mortgage endowment claims are still the biggest source of new claims for Financial Services Compensation Scheme (FSCS). According to it’s latest report there were 7,410 new claims during the financial year.
The FSCS received significantly fewer mortgage endowment claims than it had expected during the year. It had planned to deal with 26,000 new claims when it actually dealt with approximately 13,600 claims.
Of 13,625 mortgage endowment claims completed 45 percent resulted in an offer of compensation. The average compensation paid was £1,800.
The FSCS also reported on the speed of completing claims. 94 percent of claims both received and completed in 2007/08 were completed within six months. On average 82 percent of mortgage endowment claims, including those in progress at the start of the year, were completed within six months of receipt.
The report also highlights improvements in dealing with complex claims where work in progress for cases over six months was reduced to seven per cent, a “significant improvement” on their position at the beginning of the year.
The FSCS is an independent body which pays compensation when a company is unable to pay claims against it. The service is free to consumers although there are limits to the amount of compensation it can pay.
