Seven firms declared in default in last two months

This means firms have gone out of business and are unable to meet any claim themselves

A red inked rubber stamp with the word Fail

The Financial Services Compensation Scheme (FSCS) has confirmed that seven firms were declared in default between June and July 2023.

This means the firms have gone out of business and are unable to meet any claim themselves.

If a regulated financial firm is no longer trading and can’t pay a customer’s claim, the FSCS can step in to pay compensation.

Chief communications officer at FSCS Lila Pleban said: “In the last financial year, FSCS paid out over £400m in compensation, helping almost 68,000 people get back on track financially. We know it’s stressful when a firm goes bust owing its customers money but our expert claims handlers do everything they can to make our free compensation process as easy as possible.”