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Compensation lifeline for customers who lost thousands after Burton finance firm's collapse

By Burton Mail  |  Posted: August 16, 2014

By Rich Guttridge

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PEOPLE who invested tens of thousands of pounds with a Burton finance firm before seeing their cash disappear when it went into liquidation could be handed a lifeline in the form of compensation.

Independent financial advisor MWM Investments Ltd, which was based on the Centrum 100 business park, recently went under with hundreds of thousands of pounds of its customers' cash.

The firm, which assisted with insurance, mortgages, pensions and savings, was liquidated after it was judged that it would be unlikely to repay its debts, leaving people who had put huge sums into the company unsure of whether they would see their money again.

But the Financial Services Compensation Scheme (FSCS) has now told those affected that they could be in line for a payout.

FSCS works to help victims claw back some of what has been lost.

It said claims against the company totalled more than £500,000, though the true figure of lost cash was unknown.

On average, people who lost out are seeking to claim back around £30,000 each.

A FSCS spokesman said: "The current estimated number of claims against MWM Investments Limited is 17, and the estimated value of these claims is £510,000.

"As the firm has only just been declared in default this number could fluctuate."

FSCS said it was possible that there were still more people who had invested in MWM who had yet to come forward.

MWM Investments Ltd was established in 2004 and, according to business directories, worked 'solely in the interests of it clients'.

Head of communications Mark Oakes urged anyone who fears they may be entitled to compensation to contact them.

He said: "FSCS was established to protect consumers when authorised financial services firms go bust.

"It protects your deposits, investments, home finance and insurance.

"If anyone believes they may be owed money as a result of their dealings with any of these firms, please get in touch with FSCS, as we may be able to help you."

The company is one of six from the West Midlands that FSCS is currently handling compensation claims for after being declared in default.

Since being set up in 2001, it has secured more than £26 billion from customers that lost out after firms went bust.

Anyone who has had dealings with MWM Investments Ltd and believes they are owed money should contact FSCS on 0800 678 1100 or 0207 741 4100.

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