16th June 2011
Help is on the way for more than 250 customers of Southsea Mortgage and Investment Company Limited, a Havant-based bank that went into insolvency today (16 June 2011). The Financial Services Compensation Scheme (FSCS) is stepping in to compensate customers of the bank.
Customers of Southsea Mortgage and Investment Company Ltd will be entitled to compensation of up to £85,000 each. They will not need to contact the FSCS to apply for compensation – the FSCS will send their compensation to them automatically.
The FSCS expects to pay compensation to eligible customers within seven days in the majority of cases. It will aim to pay any remaining compensation claims (i.e. those that are likely to be more complex) within twenty working days.
The FSCS understands that Southsea Mortgage and Investment Company Ltd has approximately 270 customers with deposits totalling some £7.4m. Customers of the bank with an ISA account will shortly receive a certificate from the insolvency practitioner showing the balance they had saved in their ISA on 16 June. This will enable them to open a new ISA with another ISA manager of their choice.
Anyone with mortgages or loans from Southsea Mortgage and Investment Company Ltd should continue to make repayments and service their debts in the normal way. Customers of the firm will be contacted in due course and advised how loan and mortgage repayments will be handled in future. For deposit claims, the FSCS pays compensation on a gross basis and does not deduct loans or other debts from compensation payments.