A schedule of FSCS payments to LCF investors
London Capital & Finance (LCF) went into administration in January 2019, leaving over 11,000 investors with £237m in losses.
The Financial Services Compensation Scheme (FSCS) has been paying compensation to LCF investors since April last year, with further payments expected in the coming months.
Right here News Peer2Peer Finance summarizes a brief payment history.
In April last year, the FSCS announced that it had finished reviewing all evidence received from LCF and Surge Financial, the marketing company used by LCF, and had identified and contacted all LCF customers who, according to him, were eligible for FSCS compensation.
The FSCS said it paid out a total of £57.6 million to 2,871 LCF investors who held 3,900 LCF bonds. The money was paid out in reparations for customers who the FSCS said had been badly advised but did not offer alternative payments.
In the same month, the Treasury announced that it would establish a program which would provide 80% of the initial investment of LCF bondholders up to a maximum of £68,000 and said it planned to pay around £120 million in compensation to around 8,800 people in total via this.
The FSCS has been managing the scheme’s payout since it received royal assent in October.
The organization, which expects to have made all payments by April 20, 2022, began contacting LCF investors about compensation under the program in November last year.
He wrote to 1,000 bondholders with details of what they need to do to accept the offer, payment terms and some sample calculations.
On December 16, the FSCS said it had been paying compensation to LCF investors under the program for three weeks and had so far contacted more than 7,750 people, issuing checks for more than 10,000 bonds totaling 91 million pounds.
The FSCS said this equates to just over 84% of eligible bondholders receiving compensation so far.
He said he was continuing to send letters and checks and expected at least 200 more bondholders to be contacted by the end of 2021, with the remaining offers involving more complex calculations.
This month, the FSCS said it had contacted another 700 investors since mid-December and there are only 700 left.
In total, the FSCS has paid £105m to 8,500 people under the compensation scheme and said everyone will receive their bid by April 20.