Consumers will be able to receive compensation within a week of a financial institution's collapse following the implementation of new rules from the FSA.
As part of its reforms to the Financial Services Compensation Scheme (FSCS), the FSA wants to speed up compensation payments and change the way debts are taken into account. The new rules, which come into force on 31 December 2010, mean most individuals and small businesses will receive compensation within seven days, while all payments will take no longer than 20 days. In addition, payments will now be made on a gross basis if the consumer has debts with the same firm. Previously, a consumer with savings and a personal loan from the same institution would have their debt deducted fr...
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