Compensation swiftly paid to savers of bank

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COMPENSATION has been paid to customers of a Havant-based bank.

Hundreds of thousands of pounds has been paid to about 270 people who held accounts with Southsea Mortgage and Investment Company Ltd.

As reported in The News, the bank, in Langstone Gate, Solent Road, ceased trading last Thursday owing £7.4m to savers.

It was wound up by financial authorities after getting into trouble following the 2008 banking crisis.

The bank lent to house-builders and problems began when developers defaulted on loans.

Officials from The Financial Services Compensation Scheme said it had sent compensation payments to the vast majority of customers on Friday.

They said only a small number of people have not been paid as their claims are more complex.

The FSCS is aiming to pay these claims within 20 working days.

These include 11 trust accounts and the accounts of four people who are deceased. Customers are being paid up to a limit of £85,000 each.

Mark Neale, chief executive of the FSCS, said: ‘This is good news for savers with the Southsea Mortgage and Investment Company Ltd.

‘Financial Services Compensation Scheme protection has kicked in and the payments are going out now.’