From Money Extra:
The Financial Services Compensation Scheme (FSCS) improved its service to consumers while cutting its costs during 2007/08, according to its annual report out today. At the same time, the Scheme passed the billion pound mark in compensation paid to consumers.
FSCS and the financial services industry faced enormous challenges in 2007/08, says the report. It was a year in which the markets suffered their worst turmoil in recent years. Despite this, FSCS made over 9,450 payments for insurance claims and completed close to 22,000 other claims, reduced waiting times for consumers and paid more than £82m in compensation. That brought the total amount of compensation paid by FSCS since it was set up to more than £1.04 bn.
FSCS received fewer claims overall during 2007/08 than originally projected. Most notably mortgage endowment and pension review claims – both major drivers of the Scheme’s work in recent years – continued on a downward trend. Following this reduction in the volume of claim…