Claims Process
The FSCS will be triggered automatically and will pay compensation to customers of the firm without contacting them first.
We will do our best to deal with claims as quickly as we can. How long this takes depends on the type of claim. We will aim to pay compensation in the majority of cases within seven days of a bank, building society or credit union failing. We will aim to pay any remaining claims, which are likely to be more complex, within 20 working days.
If any depositor is facing particular hardship we will try to prioritise their claim.
When we pay a claim we take an assignment of rights which gives us the right to try and recover money from the failed firm to reduce the cost of compensation to levy payers.
Payment of compensation is usually made by cheque or cash over the counter at Post Offices. The majority of claims will be paid in sterling.
Compensation limits
The compensation limit for deposit claims is £85,000*. The limit applies per depositor per institution and covers deposits made in all currencies. Each depositor is entitled to compensation up to this amount, whether the deposits are in sole or joint accounts.
* The compensation limit for Deposits was changed on 31 December to £85,000 following changes brought in by the Deposit Guarantee Scheme Directive. For claims against depositors declared in default between 7 October 2008 and 30 December 2010, the maximum level of compensation is £50,000 (100% of the first £50,000). For claims against deposit-taking firms declared in default between 1 October 2007 and 6 October 2008, the maximum level of compensation is £35,000 (100% of the first £35,000). For claims against deposit-taking firms declared in default before 1 October 2007, the maximum level of compensation is £31,700 (100% of the first £2,000 and 90% of the next £33,000).