The Financial Services Compensation Scheme has issued 1,295 decisions on claims made by victims of London Capital & Finance (LCF).
This has resulted in £20m ($26.4m, €22.3m) being paid in compensation so far; with £8.4m handed out in July 2020 and £5.1m in June.
“This represents close to a 50% increase in the amount we’ve paid out since last month,” the FSCS said.
“While we still have a lot of claims to review, we want to reassure LCF customers that this remains a high priority for us and we’re working to pay customers as quickly as possible.”
A further extension
To cope with the high volume of data related to the LCF claims, the lifeboat scheme said it is increasing the size of the specialist team dealing with the issue by 80%.
The FSCS originally estimated that all claims would have been decided on, and potential redress awarded to victims, by September 2020.
But in July the lifeboat scheme said it was not going to be able to meet the deadline, as it had received additional evidence, including 100,000 extra emails, which needed analysing.
Now, the FSCS admitted the process could take up until the end of December 2020.
It added: “We know that this is an extremely difficult time for LCF customers, and we really appreciate your patience while we continue our review of LCF claims.
“You don’t need to take any action. We’ll update you again as soon as we have more news.”
