The Financial Services Compensation Scheme (FSCS) has announced that customers of Welcome Financial Services Limited (WFSL) may be entitled to receive compensation in relation to advice on, or the arranging of, payment protection insurance (PPI) by the firm on or after 14th January 2005.

The doorstep lender, which is part of the Cattles group, has been declared in default by the FSCS because it is unable, or likely to be unable, to pay claims against it in relation to PPI.

Welcome apparently sold a substantial number of PPI policies to its customers, and a declaration of default opens the way for them to make a claim with the FSCS, which has arranged to use WFSL’s claims handling resources.

However, the FSCS will remain responsible for all decisions on claims, which will be made in accordance with its rules.

The Scheme is making arrangements to contact all policyholders who were sold PPI by WFSL on or after 14th January 2005, and says it will work as quickly as possible to process any claims received.