So far this financial year the Financial Services Compensation Scheme has declared 40 firms in default, opening the door to ex-clients to submit claims for millions of pounds of compensation.

The highest compensation payout is expected to be £15.4m to ex-customers of the London Community Credit Union (FRN: 213743), which was declared in default in January.

The FSCS said that so far £13.2m has been paid out to ex-customers of the credit union, which had 18,335 members. It had branches in Stratford, Hackney, Bethnal Green and Poplar.

Three other firms were declared in default by the FSCS in December and January, it said.

The firms were Cheshire-based Holborn Assets Ltd (FRN 648817), Glasgow-based Broadfoot, McKee and Hamilton, trading as Professional Financial Services (FRN: 145073, and Surrey-based Bourne House Ltd (FRN 462820).

Of the 40 firms declared in default in the current financial year from 01/04/2024 the top five in terms of compensation paid out (at the end of January) are:

*Total compensation is expected to be £15.4m. Source: FSCS

Sabah Carter, chief data, intelligence and technology officer at the FSCS said: “FSCS is here to protect consumers across the UK and to contribute to financial stability. Our free and independent service helps get people back on track when financial firms fail. It doesn't take long to put a claim in online and customers can also get help from our expert claims handlers if they need it.”