2 February 2006

A rapidly growing number of people are seeking help from a new online service after being mis-sold a financial product by companies that are no longer trading.

The web-based service was developed by the Financial Services Compensation Scheme (FCSC) as a way of providing some form of compensation for victims of mis-selling.

Consumers can submit claims for a range of financial products including deposits, insurance, mortgages and investments.

It works by asking the consumer to fill in a quick online questionnaire to see whether the FSCS can help the individual.

This method speeds up the whole claims process and the questionnaire automatically generates a claim application form.

Since the scheme was launched in 2001, the FSCS has paid out over £650 million in compensation.

The chief executive for the FSCS, Loretta Minghella, said the FSCS acts as an important last port of call for consumers trying to deal with severe financial loss.

"FSCS plays a vital role in protecting consumers and maintaining confidence in the industry," she explained.

"Without our help thousands of consumers would have nowhere to turn."

The service is free for users, supported by funds from authorised financial services firms.

Almost 9,000 new endowment claims were submitted in the financial year 2004 to 2005, but the FSCS expects about 22,000 new claims by the end of this current financial year.

© Adfero Ltd

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