Part

COMP Compensation Sourcebook

Chapter

Rejection of application and withdrawal of offer

Printed on: 22/12/2024

Rulebook at: 04/10/2013

COMP 8

Rejection of application and withdrawal of offer

COMP 8.1

Application and Purpose

  • 01/12/2004

Application

COMP 8.1.1

handbook-rule
This chapter applies to the FSCS.
  • 01/04/2013

COMP 8.1.2

handbook-guidance
It is also relevant to claimants.
  • 01/04/2013

Purpose

COMP 8.1.3

handbook-guidance
In some circumstances, it may be appropriate for the FSCS to reject an application for compensation, or withdraw an offer of compensation. The purpose of this chapter is to set out when those circumstances arise.
  • 01/04/2013

COMP 8.2

Rejection of application for compensation

  • 01/12/2004

COMP 8.2.1

handbook-rule
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.
  • 01/04/2013

COMP 8.2.2

handbook-guidance
A rejection under COMP 8.2.1 R does not mean that the claimant cannot receive compensation. A rejected application may be resubmitted, with the appropriate amendments. An application rejected under COMP 8.2.3 R may be resubmitted if COMP 8.2.5 R applies.
  • 01/04/2013

COMP 8.2.3

handbook-rule
The FSCS must reject an application for compensation if:
(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:
(a) the date on which the relevant person is determined to be in default; and
(b) the date on which the claimant first indicates in writing that he may have a claim against the relevant person;
unless COMP 8.2.4 R or COMP 8.2.4A R applies; or
(2) the liability of the relevant person to the claimant has been extinguished by the operation of law, unless COMP 8.2.5 R applies.
  • 01/04/2013

COMP 8.2.4A

handbook-rule
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.
  • 01/04/2013

COMP 8.3

Withdrawal of offer of compensation

  • 01/12/2004

COMP 8.3.1

handbook-rule
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.
  • 01/04/2013

COMP 8.3.2

handbook-rule
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.
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COMP 8.3.3

handbook-rule
The FSCS may repeat any offer withdrawn under COMP 8.3.1 R or COMP 8.3.2 R.
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COMP 8.3.4

handbook-rule
The FSCS must withdraw any offer of compensation if it appears to the FSCS that no such offer should have been made.
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COMP 8.3.5

handbook-rule
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.
  • 01/04/2013