Claims made to the Financial Services Compensation Scheme (FSCS) are falling, according to its annual report for 2007/8.
The FSCS says mortgage endowment and pension review claims – both major drivers of the scheme’s work in recent years – are on a downward trend, although mortgage endowment complaints remain the most numerous at over 7,400 claims.
It adds it handled more than 22,000 claims during 2007/8 and, as a result of falling claims, was able to maintain its costs and fall £6m under budget.
The FSCS says it paid more than £82m in compensation throughout the year, taking its total since its inauguration in 2001 to more than £1bn.
Loretta Minghella, FSCS chief executive, says: “2007/08 was a year of challenges and achievements for FSCS.
“Away from the spotlight on the banking sector, we were dealing with a diverse portfolio of compensation claims across the industry.
“Despite the demands of the turbulent environment, it was a year in which FSCS improved its service to consumers and contained costs for levy payers, reinforcing our commitment to being as efficient and effective as possible.
“We completed some of the most complex and longstanding claims on our books, while also processing new claims within our target times, all well under budget.”
The FSCS says that, despite what it calls the worst market turmoil in years, it made over 9,450 payments for insurance claims and reduced waiting times for consumers.
It says it ended the year achieving its core target of completing 90% of new claims within six months of receiving an application for compensation and says fewer than 8% of its claims were more than six months old. This contrasts with 28% of claims being more than six months old as at 31 March 2007.
The FSCS made £20m in recoveries, it says, helping it to offset the £82m in compensation paid and says 3,470 splits claims were completed in 2007/8, with claims relating to two specific defaults: Exeter Fund Managers and BFS Investments.
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