Update on Cattles Plc and Welcome Financial Services Limited

Cattles Plc (“Cattles”) has today announced plans to restructure its business.

Welcome Financial Services Limited (“WFSL”) is a member of the Cattles Group and is regulated and authorised by the Financial Services Authority. If the Group’s proposed restructuring arrangements are approved, and certain other conditions are satisfied such that the restructuring becomes effective, and it is determined by the FSCS that WFSL is in default, the FSCS will handle claims against WFSL for the mis-selling of payment protection insurance after 14 January 2005. As part of the arrangements, the FSCS will receive a payment from WFSL in respect of the costs of compensating PPI claims.

The FSCS considers that these arrangements would better protect the interests of both claimants and levy payers than would otherwise be the case in a formal insolvency of WFSL.

By Thomas Chen
29 November 2010