The Financial Services Compensation Scheme paid more than £204m in compensation to over 21,000 claimants in 2009/10.
Two-thirds of the compensation paid during the year was for Payment Protection Insurance and investment claims. The FSCS also completed the validations of the amounts paid to fund the transfer of the depositors of Bradford & Bingley, Heritable Bank and Kaupthing Singer & Friedlander.
Recoveries of £1.06bn were made, which will be used to reduce the principal of the loans borrowed from HM Treasury for the bank failures of 2008/09.
The FSCS will also contribute to the cost of Dunfermline Building Society at the end of the resolution process, but the Scheme has made an initial provision of £400m based on the latest information available to it.
Mark Neale, FSCS chief executive says: “The Annual Report and Accounts 2009/10 gives a detailed insight into the challenges the Scheme faced as well as its achievements during 2009/10. It demonstrates the vital service the FSCS provides to consumers and the benefits that it brings to the industry.”
