Former clients of defunct adviser firm Network Data have been invited to file for compensation after the FSCS today declared the network in default.
Network Data Ltd, part of Network Data Holdings, went into administration in May 2009 allegedly owing appointed representatives (ARs) more than £2m.
It followed the removal of the company's permissions by the FSA the previous month, a move which left its ARs unable to trade.
It is one of five businesses offering mortgage advice today declared in default by the FSCS.
The compensation scheme only declares a company in default once it has begun receiving compensation claims from its customers.
Financial Quest UK, Finance Direct UK, First Class Mortgages and Insurance Services - also trading as Professional Mortgages Services Group - were also declared in default.
Customers of the five companies can now file compensation claims against them if they feel they have lost out financially as a result of their dealings.
Kate Bartlett, director of operations, says: "The FSCS's role is to help people who have lost money as a result of doing business with an authorised firm that is unable or likely to be unable to meet claims made against it.
Following recent changes in the compensation limits, mortgage customers will be eligible to claim 100% of the first £50,000 per person per firm if a firm was declared in default on or after 1 January 2010.
The maximum level of compensation for claims against firms declared in default before 1 January 2010 is 100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per person per firm.
People who believe they may have a claim against the firms should contact the FSCS on 0800 678 1100 or 020 7892 7300, or by email at [email protected]
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