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  1. Why has the firm been declared in default?
  2. Why has the firm been restructured and also been declared in default?
  3. I would like to make a PPI claim against the firm. How do I go about this?
  4. Why is WFSL sending application forms to customers for them to claim compensation?
  5. When will I be sent an application form for me to make a claim for compensation?
  6. What should I do if I have claims relating to PPI sold by the firm both before 14 January 2005 and on or after 14 January 2005?
  7. What has been the FSCS’ involvement in relation to the firm’s restructuring?
  8. Is it true that the FSCS will receive payments as part of the Group’s restructuring?
  9. Is it true that the FSCS calculates compensation on a different basis to the firm?
  10. Can I still raise a complaint to the Financial Ombudsman Service?
  11. What is the level of protection provided by the FSCS?
  12. Why is there a 90% limit to the compensation available from the FSCS?
  13. If I appoint a claims management company (CMC), solicitor, or other representative to handle my claim to the FSCS, will the FSCS pay their fees?
  14. I appointed a claims management company (CMC) to deal with my claim to the FSCS. Will I be able to deduct the fees from the compensation that the FSCS pays me?
  15. Will I need to appoint a representative such as a claims management company (CMC) to deal with my claim to the FSCS?
  16. If I appoint a claims management company (CMC) or other representative, will I have to arrange to pay their fees myself?
  17. If I am paid compensation, is it correct that my legal rights are assigned to the FSCS?

1. Why has the firm been declared in default?

FSCS has determined that the firm is unable, or likely to be unable, to pay claims against it in relation to the selling of payment protection insurance (“PPI”) on or after 14 January 2005.  As a result, the firm has been declared in default and consumers can now apply to the FSCS for compensation for losses relating to business activities that are protected by the Scheme, including in relation to PPI or other insurance products sold on or after 14 January 2005.

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2. Why has the firm been restructured and also been declared in default?

The Firm (and the Cattles Group) is insolvent but has reached an agreement with its financial creditors to restructure its liabilities. Given that it is insolvent, the firm has been declared in default.

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3. I would like to make a PPI claim against the firm. How do I go about this?

You can make an application for a PPI claim by contacting the FSCS customer services team on 0800 678 1100 or 0207 741 4100. 

FSCS will remain responsible for decisions and the settlement of compensation on all claims relating to the selling of PPI by the firm on or after 14 January 2005, which will be assessed in accordance with FSCS rules.

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4. Why is WFSL sending application forms to customers for them to claim compensation?

The FSCS has engaged WFSL to assist in the handling of PPI claims. Since the firm holds all the relevant information needed to handle claims, and has the resources available to deal with a large volume of claims, this will enable claims to be processed more quickly and efficiently as part of the firm’s restructuring.

The FSCS will remain responsible for decisions and the settlement of compensation on all claims relating to the selling of PPI by the firm on or after 14 January 2005, which will be assessed in accordance with FSCS rules.

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5. When will I be sent an application form for me to make a claim for compensation?

You can make an application for a PPI claim by contacting the FSCS customer services team on 0800 678 1100 or 0207 741 4100. 

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6. What should I do if I have claims relating to PPI sold by the firm both before 14 January 2005 and on or after 14 January 2005?

If your claim relates to a policy sold before 14 January 2005, you should contact the firm directly and it will process your claim. If you also have a claim relating to a policy sold by the firm on or after 14 January 2005, you will need to contact the FSCS customer services team on 0800 678 1100 or 0207 741 4100. 

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7. What has been the FSCS’ involvement in relation to the firm’s restructuring?

The firm (as part of the Cattles Group) approached the FSCS in relation to its potential PPI liabilities as part of its financial restructuring discussions. The FSCS believed it would be in the best interests of both policyholders and levy payers to be involved in the discussions to enable eligible claims to be assessed and compensated more quickly, and at less cost to levy payers, than if the firm had gone into administration or liquidation.

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8. Is it true that the FSCS will receive payments as part of the Group’s restructuring?

The firm’s restructuring provides for the FSCS to receive payments from WFSL to cover the costs of compensating PPI claims in respect of policies sold on or after 14 January 2005.

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. Because the number of PPI claims which might be submitted against the firm is unknown and likely to be substantial, there is no certainty that the firm would have been in a position to make such payments or pay PPI claims in respect of policies sold on or after 14 January 2005 had the restructuring not taken place.

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9. Is it true that the FSCS calculates compensation on a different basis to the firm?

The rules under which the FSCS operates set out the basis on which we are required to calculate compensation, and this differs from the basis used by firms. Our rules are contained in the FCA handbook.

Under the FSCS rules claimants will be entitled to 90% of the value of their claim. Amounts of compensation payable will be first set off against any outstanding loan balances you may owe to WFSL, which could mean that we will not send you your compensation.

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10. Can I still raise a complaint to the Financial Ombudsman Service?

If you wish to complain about the sale of a PPI policy on or after 14 January 2005 (or any of the firm’s other regulated activities), you should contact FSCS who will assess your claim in accordance with its rules. 

If your complaint relates to matters outside the scope of the FSCS, such as PPI policies sold before 14 January 2005 or consumer credit issues, you should contact the firm in the first instance. If you are dissatisfied with the response from the firm, these complaints can still be referred to the FOS.

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11. What is the level of protection provided by the FSCS?

For claims relating to the selling or arranging of general insurance (including PPI), the FSCS will compensate 90% of the value of the claim, with no upper limit. Under the FSCS Rules, amounts of compensation payable will be first set off against any outstanding loan balances you may owe to WFSL, which could mean that we will not send you your compensation.

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12. Why is there a 90% limit to the compensation available from the FSCS?

There are limits to the protection the FSCS can provide. Our rules specify which types of claim are eligible for compensation and the limits on compensation payable.

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13. If I appoint a claims management company (CMC), solicitor, or other representative to handle my claim to the FSCS, will the FSCS pay their fees?

The FSCS does not charge individual consumers for using its service, and will not pay any fees you incur as a result of appointing a CMC, a firm of solicitors or other representative to deal with your claim. Please note that if you appoint a representative to act for you when making a claim to the FSCS you may be required to deduct any fees from compensation you may be awarded, and will need to make your own arrangements to pay those fees. Please also note that any compensation you may be awarded will be paid to you rather than your representative.

Under the FSCS Rules, amounts of compensation payable will first be set off against any outstanding loan balances you may owe to WFSL, which could mean that you do not receive any or enough compensation to meet the fees charged by your representative. 

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14. I appointed a claims management company (CMC) to deal with my claim to the FSCS. Will I be able to deduct the fees from the compensation that the FSCS pays me?

The FSCS does not charge individual consumers for using its service. Please note that if you appoint a CMC, a firm of solicitors or other representative to act for you when making a claim to the FSCS you may be required to deduct any fees from compensation you may be awarded, and will need to make your own arrangements to pay those fees. Please also note that any compensation you may be awarded will be paid to you rather than your representative.

Under the FSCS Rules, amounts of compensation payable will be first set off against any outstanding loan balances you may owe to WFSL, which could mean that you do not receive any or enough compensation to meet the fees charged by your representative.

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15. Will I need to appoint a representative such as a claims management company (CMC) to deal with my claim to the FSCS?

No. If you have not already appointed a CMC to act on your behalf, and you need help with completing the FSCS application form we have sent you, or if you have any other questions, you can contact the FSCS customer services team on 0800 678 1100 or 0207 741 4100.

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16. If I appoint a claims management company (CMC) or other representative, will I have to arrange to pay their fees myself?

Yes. If you appoint a CMC or other representative, the FSCS will not arrange to pay the fees charged by that CMC or representative. You will need to make your own arrangements to pay their fees. Please also note that any compensation you may be awarded will be paid to you rather than your representative.

Under the FSCS rules, amounts of compensation payable will be set off against any outstanding loan balances you may owe to WFSL, which could mean that you do not receive any or enough compensation to meet the fees charged by your representative. 

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17. If I am paid compensation, is it correct that my legal rights are assigned to the FSCS?

Yes, under the statute, the rules by which we operate and the terms of the FSCS's application form, on the payment of compensation, claimants are typically required to transfer or assign to the FSCS their legal rights in their entirety against the firm in default and/or any relevant third parties. In other words, the FSCS then "stands in the shoes" of the claimant. Relying on such rights, the FSCS seeks to recover all or part of the cost of compensation. Such recoveries are used to reduce the cost of levies on financial services firms, which are raised to fund the operation of the FSCS and the payment of compensation.

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