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What happens next
After you submit an FSCS compensation claim, the Financial Services Compensation Scheme will first check that it has received all the information it needs. If anything is missing, it may contact you to ask for more details or documents.
Once your claim is complete, FSCS will review it against its rules and the rules that apply to the failed firm. This helps it decide whether your claim is eligible and, if so, how much compensation may be due.
How your claim is assessed
FSCS will look at the type of product or service involved, the circumstances of the firm’s failure, and whether you are covered by its protection. Not every complaint or loss qualifies, so the scheme must confirm that the claim falls within its remit.
If your claim relates to savings, investments, pensions, insurance, or a financial adviser, the assessment may involve checking account records, policy details, or advice records. In some cases, FSCS may need to contact the firm’s administrators, liquidators, or other third parties.
Possible outcomes
If your claim is accepted, FSCS will work out the amount of compensation due under its rules and limits. You should receive a decision explaining whether your claim has been upheld and how the payment has been calculated.
If your claim is not eligible, FSCS will explain why. You may be told that the firm is still solvent, that the loss is outside the scope of protection, or that another route is more suitable, such as making a complaint directly to the firm or the Financial Ombudsman Service.
Timescales and payment
The time it takes to resolve a claim varies widely. Simple claims may be dealt with relatively quickly, while more complex cases can take longer, especially if the firm has failed recently or records are incomplete.
If compensation is awarded, FSCS will usually pay it directly to you or arrange payment in the way set out in its decision. The money can go to a bank account in your name, and in some cases it may be offset against an outstanding balance on the same product.
What you should do while you wait
Keep an eye on your email and post in case FSCS asks for more evidence. It is a good idea to keep copies of all letters, statements, policy documents, and any correspondence with the failed firm.
If your circumstances change, such as a new address or bank details, tell FSCS as soon as possible. Staying responsive can help prevent delays and make it easier for your claim to move forward.
Frequently Asked Questions
After submission, FSCS usually acknowledges receipt, reviews the information you provided, and checks whether your claim is within scope. If more details are needed, they may contact you for evidence or clarification before making a decision.
The time it takes varies depending on the type of claim and the complexity of the case. Straightforward claims may be resolved faster, while more complex claims can take longer if FSCS needs to gather extra information or wait for firm records.
Yes, FSCS normally sends confirmation that your claim has been received. This may include a reference number or details of the next steps so you can track progress and respond if further information is requested.
FSCS may ask for bank statements, contract notes, policy documents, account statements, correspondence, identification, or proof of losses. The exact documents depend on the type of claim and what information is already available.
Yes, FSCS can request additional information at any stage if it needs to verify your claim or understand your circumstances better. Responding quickly and clearly can help avoid delays.
If evidence is insufficient, FSCS may ask you for further proof or rely on records from the failed firm, administrators, or other sources. If the claim still cannot be supported, FSCS may decide that compensation cannot be paid.
FSCS checks whether the firm is eligible under its rules, whether the product or service is covered, and whether you meet the relevant eligibility criteria. It also considers whether there are any exclusions or limits that apply.
If your claim is accepted, FSCS will calculate any compensation due and arrange payment according to its rules. The amount paid may be subject to compensation limits and may depend on the type of financial product involved.
If your claim is rejected, FSCS should explain the reason, such as ineligibility, insufficient evidence, or the claim being outside its rules. You may be able to ask for a review if you believe the decision is incorrect.
Yes, if you disagree with the outcome, you can usually ask FSCS to review the decision. FSCS will typically explain the review process and what information you need to provide to support your challenge.
FSCS may contact you by email, letter, or phone if it needs more information, has an update, or is ready to issue a decision. It is important to keep your contact details up to date so you do not miss any correspondence.
No, submission does not guarantee payment. FSCS still needs to assess whether the claim is valid, covered, and supported by evidence before deciding whether compensation is due.
If the firm is in administration, FSCS may work with administrators or use the firm records to assess your claim. This can take longer because information may need to be collected from multiple sources before a decision is made.
Yes, you should inform FSCS if your address, bank details, or contact information changes. Keeping your details current helps prevent delays and ensures any payment or correspondence reaches you correctly.
If you do not respond, FSCS may be unable to continue assessing your claim and could close it or make a decision based on the information already available. Replying promptly is the best way to keep the claim moving.
FSCS calculates compensation based on the type of claim, the amount of loss, and the applicable compensation limits and rules. In some cases, the calculation may also take account of any payments you have already received or recoveries made elsewhere.
FSCS generally provides updates when there is progress or if it needs something from you. The frequency of updates can vary depending on how complex the claim is and whether it is waiting on external information.
If your claim exceeds the relevant compensation limit, FSCS may only pay up to the maximum amount allowed under its rules. Any unpaid balance may need to be pursued through another process, depending on the circumstances.
Yes, you can usually withdraw your claim if you no longer wish to continue. If you are considering withdrawal, it is sensible to contact FSCS first to understand any consequences for your case.
While waiting, monitor your messages, keep copies of all documents, and respond promptly to any FSCS requests. If you have new evidence or your contact details change, update FSCS as soon as possible.
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