Financial Compensation scheme

what is it --- well yesterday as I was reviewing a file for a client, it appears that they had a loan with Picture Finance.. so what you may say ?

When I wrote the letter of claim, they wrote back to say that the they were currently no longer trading and any compensation would have to be met by the FSCS, this means that the client will get a paltry sum in relation to what they would have got in the normal course of events.

How unfair is that ... Dare i be a cynic and suggest that the company decided that they did not wish to meet all these claims for compensation and decided to call it a day ! or maybe the shareholders had enough.

So how does the FSCS work ? the industry pays a levy (sum) into the scheme and claim is investigated and compensation paid out.

so watch the space for more fun and games..

so in effect the client pays his own compensation.