COMP 8 Rejection of application and withdrawal of offer

This chapter applies to the FSCS.

If an application for compensation contains any material inaccuracy or omission, the FSCS may reject the application unless this is considered by the FSCS to be wholly unintentional.

The FSCS must reject an application for compensation if:

1. (1)

   the FSCS considers that a civil claim in respect of the liability would have been defeated by a defence of limitation at the earlier of:

   1. (a)

      the date on which the relevant person (or, where applicable, a successor) is determined to be in default; and

   2. (b)

      the date on which the claimant first indicates in writing that he may have a claim against the relevant person (or, where applicable, a successor);

   unless COMP 8.2.4 R or COMP 8.2.4A R applies; or

2. (2)

   the liability of the relevant person (or, where applicable, a successor) to the claimant has been extinguished by the operation of law, unless COMP 8.2.5 R applies.

For claims made in connection with protected investment business, protected home finance mediation, protected non-investment insurance distribution, protected debt management business or protected funeral plan business, the FSCS may disregard a defence of limitation where the FSCS considers that it would be reasonable to do so.

For a claim which falls to be dealt with (or has properly been dealt with) under a consumer redress scheme, the FSCS must disregard a defence of limitation which became available after the scheme was made or imposed.

For claims made in connection with protected investment business, protected non-investment insurance distribution, protected home finance mediation, protected debt management business or protected funeral plan business, if a relevant person (or, where applicable, a successor), incorporated as a company, has been dissolved with the result that its liability to the claimant has been extinguished by operation of law, the FSCS must treat the claim, for the purposes of paying compensation, as if the relevant person or a successor, as appropriate, had not been dissolved.

The FSCS may reject an application for compensation if:

1. (1)

   it relates to an event or transaction which has been reviewed under the provisions of a 'deemed scheme' as defined in the Financial Services and Markets Act 2000 (Transitional Provisions) (Reviews of Pensions Business) Order 2001 (SI 2001/2512); and

2. (2)

   as a result of the review in (1) no redress was payable, or redress was paid, in accordance with the regulatory standards for the review of such events or transactions, and the terms of any scheme order, applicable as at the date of the review.

The FSCS may withdraw any offer of compensation made to a claimant if the offer is not accepted or if it is not disputed within 90 days of the date on which the offer is made.

Where the amount of compensation offered is disputed, the FSCS may withdraw the offer but must consider exercising its powers to make a reduced or interim payment under COMP 11.2.4 R or COMP 11.2.5 R before doing so.

The FSCS may repeat any offer withdrawn under COMP 8.3.1 R or COMP 8.3.2 R.

The FSCS must withdraw any offer of compensation if it appears to the FSCS that no such offer should have been made.

The FSCS must seek to recover any compensation paid to a claimant if it appears to the FSCS that no such payment should have been made, unless the FSCS believes on reasonable grounds that it would be unreasonable to do so, or that the costs of doing so would exceed any amount that could be recovered.