Hundreds of West Midlands consumers could be in line for compensation after six financial firms in the region were declared to be in default by the Financial Services Compensation Scheme (FSCS).

The scheme protects customers of regulated financial services firms that are unable to pay claims for compensation made against it. These companies are then judged to have defaulted on their obligations.

Mark Oakes, head of communications for FSCS, said: “FSCS protects consumers when authorised financial services firms go bust. We are appealing to anyone who believes that 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.”

Since its inception FSCS has come to the aid of more than 4.5 million people, paying out over £26 billion in compensation. It was set up by Government in 2001 and is funded by the financial services industry.

The scheme protects insurance, investments, deposits and mortgage advice and arranging.

The firms judged to have defaulted are: Angela Murfitt Financial Strategy, of Staffordshire; Hobson Financial Planning, (formerly RF Hobson Insurance Brokers) of Lichfield;  Covt (Realisation) formerly LTI, of Coventry; Home Remortgages, of Shropshire; Star Loans & Finance, Newhall Street, Birmingham; Mortgage Rescue, of Leicester Street, Walsall. FSCS has already started to pay out to people who have had dealings with the six firms.