Beware of Scam Targeting London Capital & Finance Customers, FSCS Warns

The UK Financial Services Compensation Scheme (FSCS) is sounding the alarm about a new scam that is specifically targeting customers of London Capital & Finance (LCF). This warning comes after reports of letters circulating on what appears to be official FSCS letterhead. However, these letters are not from the FSCS but are part of a fraudulent scheme.

The objective of these false letters is to entice LCF consumers into fraud by offering compensation for LCF asset liquidation. The FSCS wishes to emphasize that they are not liable for these mailings, which are a fraud. LCF consumers must be aware of this and refrain from responding or providing personal information to the fraudsters.

LCF, a company that offered financial services, faced financial difficulties and went into administration on January 30, 2019. The FSCS declared LCF's failure on January 9, 2020. Following an extensive investigation, the FSCS concluded its review of evidence by April 19, 2021, and subsequently provided compensation to eligible bondholders. A total of £57.6 million was paid to 2,871 bondholders in accordance with FSCS rules.

To further aid customers affected by LCF's situation, the FSCS managed the LCF compensation scheme on behalf of the government until October 31, 2022. During the course of this scheme, the FSCS was able to provide compensation to 99.5% of eligible customers, effectively assisting them and their families in recovering from the financial setback. The total amount disbursed in compensation reached an impressive £115 million.

In light of this new fraud, the FSCS emphasizes the necessity of being cautious and vigilant. Customers should always confirm the legitimacy of any correspondence purporting to be from the FSCS or another financial institution. If you receive any questionable letters or texts, it is suggested that you independently check their validity via official means before taking any action.

Install the WikiFX App on your smartphone to remain up to speed on such news and notifications. This app gives useful information and updates on financial problems. The WikiFX App may be downloaded from the following link: https://www.wikifx.com/en/download.html. By being aware and careful, you may avoid becoming a victim of scams and frauds that might jeopardize your financial stability.