The UK Financial Services Compensation Scheme, or FSCS, has begun offering a free service to help consumers claim compensation of up to GBP48,000 if they have lost money as a result of their dealings with any of the 45 firms the FSCS has recently declared in default.

The FSCS is the UK’s statutory compensation scheme for customers of regulated financial services firms. It provides a free service to consumers.

Declaring a firm in default is the final part of a process in which an FSA-regulated firm has been found by the FSCS to be unable, or likely to be unable, to pay claims against it. This means that customers who have lost money as a result of dealings with one of these firms can make a claim for compensation to the FSCS.

This scheme can also pay compensation for financial loss arising from negligent investment management and fraud, or if an authorized investment firm stops trading and cannot return its customers’ investments or money.

Loretta Minghella, CEO of the FSCS, said: FSCS’s primary role is to help people who have lost money after doing business with an authorized firm if that firm is unable to meet claims made against it. It is important that customers of any of the 45 firms we have recently declared in default are aware that FSCS may be able to help, if they have suffered a financial loss.