Endowment compensation claims against companies who have since gone out of business have hit a new record high according to the latest figures from the Financial Services Compensation Scheme (FSCS).

The FSCS is a ‘last resort’ fund set up to compensate financial services customers who have been mis-sold products by firms who have subsequently ceased trading, and is funded by contributions from the finance industry.

The data shows that 20,100 new endowment claim cases had been received during the 2005-6 financial year, a rise of 131%, of which 46% successfully led to compensation offers of an average of £2000.

The FSCS also said that it saw no evidence that the number of claims had yet reached a peak.

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