FCSC pays out more than £200m
Consumers who lost money through the collapse of a financial services company received more than £200 million in compensation during the past year, figures show.
The Financial Services Compensation Scheme (FSCS) said it paid out a total of £204 million to more than 21,000 claimants during the year to the end of March.
The group received a total of 31,592 claims during the year, 185,000 more than during the previous 12 months, of which 21,802 were completed, double last year's total.
Two-thirds of the total compensation bill went to people who had either lost money through the collapse of an investment firm or who were mis-sold controversial payment protection insurance (PPI), but could not claim against the company that sold them the policy because they had gone out of business.
The FSCS said the number of PPI claims it received had increased significantly during the year to reach 2,400, and it expects the number to continue to rise during the current financial year.
PPI covers debt repayments if the holder is unable to work due to an accident or illness, or if they lose their job.
But the cover has come in for heavy criticism in recent years after it was found that in some cases it was sold to people who would never have been able to claim on it.
The group said the increase in investment related payouts was mainly due to a rise in claims against brokers, often relating to collapsed firm Keydata Investment Services.
Overall, 15,000 people received compensation in relation to an investment product.