Insurance intermediaries face shouldering the liability for up to £50m worth of claims from customers of failed payment protection insurance (PPI) insurance provider Wilmslow Financial Services.
A Companies House filing by Wilmslow’s administrators MCR shows that the Cheshire-based company owed £50m worth of PPI claims liabilities when it went into administration in May.
The sum is likely to have to be picked up by the Financial Services Compensation Scheme’s SBO2 insurance intermediation sub-class, the levy for which has exploded over the last two years from £8.5m in 2009/10 to £69.5m in 2011/12.
Wilmslow, which sold PPI products alongside loans and mortgages it arranged to clients, had just £873,435 worth of assets available for creditors, MCR estimated.
According to Financial Ombudsman Service statistics, Wilmslow was the subject of 198 general insurance complaints in the last six months of 2010, making it the 35th most complained about general insurance company.
The FSCS has said it would publish an update on Wilmslow Financial Services as soon as more information is available.
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