Close menu

Application provision

13.1 This Chapter applies only to the FSCS.



This Chapter applies only to the FSCS.



If the FSCS takes assignment or transfer of rights from the claimant or is otherwise subrogated to the rights of the claimant, it must pursue all and only such recoveries as it considers are likely to be both reasonably possible and cost effective to pursue.



If the FSCS decides not to pursue such recoveries and a claimant wishes to pursue those recoveries and so requests in writing, the FSCS must comply with that request and assign the rights back to the claimant.



If the FSCS makes recoveries in relation to a protected dormant account claim it may deduct from any recoveries paid over to the claimant under 13.5 part or all of its reasonable costs of recovery and distribution (if any).



If a claimant assigns or transfers his rights to the FSCS or a claimant's rights and claims are otherwise subrogated to the FSCS and the FSCS subsequently makes recoveries through those rights or claims, those recoveries must be paid to the claimant:

  1. (1) to the extent that the amount recovered exceeds the amount of compensation (excluding interest paid under 7.5) received by the claimant in relation to the protected dormant account claim; or
  2. (2) in circumstances where the amount recovered does not exceed the amount of compensation paid, to the extent that failure to pay any sums recovered to the claimant would leave a claimant who had promptly accepted an offer of compensation or whose rights and claims had been subrogated to the FSCS at a disadvantage relative to a claimant who had delayed accepting an offer of compensation or whose claims had not been subrogated.



The FSCS must endeavour to ensure that a claimant will not suffer disadvantage arising solely from his prompt acceptance of the FSCS’s offer of compensation or from the subrogation of his rights and claims to the FSCS compared with what might have been the position had he delayed his acceptance or had his claims not been subrogated.