The Financial Services Compensation Scheme (FSCS) has declared three mortgage and general insurance intermediaries in default, meaning affected customers can now start compensation claims.
Default status means the firms are unable, or likely to be unable, to pay claims against them, triggering FSCS protection for consumers.
Customers who can prove financial loss relating to home finance advice or arranging with Nottingham based Goldsmith Financial Adviser, Cambridgeshire's Diamond Lifestyle, or P. Hilder trading as Savings Assured Mortgages in Weston-Super-Mare, could now claim up to £48,000.
Those with claims against the firms linked to insurance advice or arranging could be eligible for 100% of the first £2,000 and 90% of the balance of their claim, with no upper limit.
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 be unable 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."
Affected parties can contact the FSCS Customer Services Team on 0800 678 1100 or 020 7892 7300 or by email at [email protected], or via
More information is available at the FSCS website www.fscs.org.uk.
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Some 2,000 consumers affected