March 26, 2024

The Financial Services Compensation Scheme (FSCS) has warned London, Capital & Finance (LCF) investors about being contacted by scammers via social media.

In an update on its website, published yesterday (December 20), the lifeboat scheme said there had been reports over the weekend that LCF bondholders were being contacted through social media or called by individuals who asked questions about compensation and offered help.

The FSCS has told investors to be wary about this type of contact as it could be a scam.

The FSCS stated: “If you haven’t yet received your compensation, there is nothing you need to do. Please be wary of any contact, especially through social media, as it may be a scam. 

“FSCS does not use social media to speak to customers directly about their claims or compensation.”

Last month (November 3), the Financial Services Compensation Scheme confirmed it will administer the LCF redress scheme on behalf of the government.

Bondholders will be contacted by the lifeboat scheme by April 20, 2022.

The scheme launched in November after it was first announced in April that the government would compensate 80 per cent of bondholders’ principal investment in eligible bonds, up to a maximum of £68,000.

But this will be reduced if they have received interest on their bonds, distributions from the insolvency administrators (Smith & Williamson) or prior compensation from the FSCS.

Where bondholders accept the offer of compensation under the scheme, FSCS will…

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