Customers of defunct lender Welcome Financial Services Ltd can now submit claims for potentially mis-sold  Payment Protection advice.

The Financial Services Compensation Scheme had previously declared Welcome as being in default as the firm was unable, or likely to be unable, to pay claims against it.

According to the lenders website Welcome sold a large number of PPI policies which could leave large numbers of customers in need of redress.

As the FSCS said it will now be responsible for PPI claims against Welcome.

Responsibility for all decisions on claims will remain with the FSCS, in accordance with its own rules, and it will closely oversee and monitor all steps in the handling of claims.

The FSCS will be making arrangements to contact all policyholders who were sold PPI by WFSL on or after 14 January 2005 and will aim to keep claimants informed of the progress of claims.