GGF Deposit Indemnity Fund Closed for New Business
Due to the current trading environment and the outbreak of COVID-19, the GGF Deposit Indemnity Fund is no longer providing cover for any deposits paid to GGF Fund Members after 31st March 2020.
If you are a GGF Fund Member and have taken a deposit before 1st April 2020, the GGF Fund rules would still apply. If you are continuing to take deposits after the 31st March 2020, then you will need to take your own actions to ensure you comply with the requirements of your chosen Competent Person Scheme in England & Wales.
Examples of compliance may be;
- That companies wish to offer consumers from whom you take a deposit from, to pay some or all of the deposit by credit card (as long as the total contract value is above £100 and below £30,000). The GGF Fund Ltd, advises that all companies who take deposits seek their own specific legal advice on this compliance.
- That customers buying products via credit finance agreements should have their deposits protected under Section 75A of the Consumer Credit Act as long as the total contract value is under £60,260. Again the GGF Fund Ltd, advises that companies seek their own specific legal advice on this.
The GGF Fund Ltd will still provide cover for deposits taken by GGF Fund Members up to 31st March 2020 as long as any premiums for deposits taken up to that date are paid to the GGF Fund Ltd by the 30th April 2020.
Under the GGF Deposit Indemnity Fund Rules, the consumers’ deposit monies will not be covered, until a GGF Fund Member pays the premiums on deposits taken up until the 31st March 2020. Deposit protection is a legal requirement of the Competent Person Schemes in England & Wales.
For more information on the GGF Fund please email email@example.com