KAUPTHING NEWS - ING are rejecting any fixed term accounts bought after 8 OCT

I have just received the email pasted below from ING claiming that they are not liable to accept my fixed term bond purchased on 9th October, and they are rejecting any bought after 8th Oct. This is despite sending me an email on 12th telling me that all my accounts and investments were safe as they were and even now when I log on to my account it still shows that all my money is in a 12 month bond at 7.15 %. I didn't attempt to buy fixed term account, I did buy one and my moeny was transferred. I can't help but feel that this sudden 'computer glitch' they are claiming allowed me to buy the fixed term is merely a response to the sudden drop in interest rates and not wanting to pay me such a high rate for the next year.

Can they do this after over a month? How do I check what the terms are and what rules they have to abide by when they take over another bank?

Any advice gratefully received. Please see their email below.

Dear Kathryn
Your application for a Kaupthing Edge fixed term deposit account
As you may be aware, Kaupthing Singer & Friedlander Limited (the Company) was placed into administration pursuant to a court order on 8 October 2008. Also on 8 October 2008, the FSA issued a First Supervisory Notice which came into effect at 1.30pm, prohibiting the Company from accepting any customer deposits.
Pursuant to the “Kaupthing Singer & Friedlander Limited Transfer of Certain Rights and Liabilities Order 2008” any Kaupthing Edge Savings Account and Kaupthing Edge fixed term deposit account that was already opened at the time of the administration transferred to ING Direct N.V., Reading branch (ING Direct).
Unfortunately, due to IT systems that we were unable to disable, the apparent ability to apply for a Kaupthing Edge fixed term deposit account could not be removed from the Kaupthing Edge website until 6 November 2008. Our records indicate that you have attempted to open a Kaupthing Edge fixed term deposit account after 8 October 2008.
As Kaupthing Edge was not permitted to accept any deposits, your application in respect of the fixed term deposit account cannot be processed. We will be arranging to credit back to your Easy Access Savings Account with ING Direct the principal amount of funds that you have attempted to place into the Kaupthing Edge fixed term deposit account. We understand that given your attempt to open a new fixed term deposit account could not be processed, these funds will be treated as never having left your Easy Access Savings Account so you will not lose any interest on your Easy Access Savings Account as a result.