Kaupthing Edge, Should I Avoid?

codger

Kaupthing Edge / Kaupthing Singer & Friedlander Ltd really is going to have to get its act together -- and fast -- where its corporate communications are concerned.

Yesterday I was one of several MSErs who pointed out that our savings accounts, though under the Kaupthing Edge "brand", are in reality with KE's UK subsidiary, Kaupthing Singer & Friedlander, and are thus fully covered by the UK's financial services compensation scheme.

I also pointed out that under the KE website's "Frequently Asked Questions" section relating to the transfer of accounts from KS&F Ltd to Kaupthing Edge Bank itself:

http://www.kaupthingedge.co.uk/help/Faqs.aspx?id=03

it is made explicitly clear that any such transfer would only happen with a minimum of 30 days' notice of change.

Now alared at #138 has kindly high-lighted that in the text of the actual Terms & Conditions, there's no mention of 30 days' notice at all.

Instead, what is explicit is that "from the date of notice to you" savings held with KS&F Ltd will be transferred to Kaupthing Edge.

So: which is it? 30 days' notice? Or with immediate effect?

The difference between the wording of these two sections of texts is not semantic, but fundamental.

With 30 days notice of change, there is time to close the account and place the savings with a UK institution covered by FSCS. With no 30 day "grace period", there is no time at all to escape the likely delays, complexities and uncertainties of whatever joint Icelandic / UK compensation scheme would kick in if the worst came to the worst.

I'm going to contact KE tomorrow to ask for clarification.

But the fact that no mention of the 30-day notice period appears in the Terms & Conditions -- and T&Cs are the essence of contract here, not the wording of some user-friendly "Frequently Asked Questions" -- inspires no confidence at all.

Savers may not be entitled to 100% certainty in all things, but they sure as hell are entitled to 100% clarity.

Andrew64

As I see it, the T&C is the contract between you and the bank. Therefore, if no period is stated, then there is no period. As such, you would just get an e-mail (notification) and that would be that!

KingL

If we're looking at worst case scenarios, they don't even have to send you an email, they can send a secure message on the website. Clearly you would have to log in to receive it.

But, lets not get too panicky about all this, eh?

codger

I'm not panicking at all.

I've just enrolled for night school classes in Icelandic.

Reaper

codger wrote: »

I'm not panicking at all.

I've just enrolled for night school classes in Icelandic.

Hope you read the small print. Their nights can last almost 24 hours.

moanymoany

Guaranteed or not, I would transfer to something safer. Your money could slip into a black hole for goodness knows how long before you got it back.

I opened a KE account in May but read something that got me concerned so didn't put cash in.

alared

KingL wrote: »

But, lets not get too panicky about all this, eh?

I`m not getting panicky either.
I`ve just moved most of my money out.
I can`t see any way to close the account online, maybe you have to phone them.

Thanks to Codger and Andrew64 for their input.

Just shows what a state things are in when you get Brown and Merkel snuggling up at a meeting and saying we must all stick together and not follow Ireland`s lead.
Soon as she`s back in Germany,she does exactly that.
Never trust banks or politicians:mad:

roddydogs

Its not KE you should avoid, its threads like this.

isofa

moanymoany wrote: »

Guaranteed or not, I would transfer to something safer. Your money could slip into a black hole for goodness knows how long before you got it back.

I opened a KE account in May but read something that got me concerned so didn't put cash in.

I guess that's a decision you make.

But as it's KE is UK run (it's actually Kaupthing Singer & Friedlander Ltd - a UK arm), it's no different to putting money in any other potentially "risky" UK bank, of which you can count most of them today.

If any of these UK banks folded, what do you think would happen?

Nothing.

The 35 and 50K protection limits are notional, in times of non-crisis. The UK government will never let a UK depositor lose a penny in a UK bank - if they did the country would turn crazy, and there would be a run on all banks. Do you think even the stupidest government would allow that to happen?

NR - who lost money?
B+B - who lost money?
HBOS - who lost money?

I rest my case.

alared

Seems to me the Icelandic government will twist KE and Iceland`s arms and get them to merge together to try to stablise things.
Would be a good move in the short term.

The USA finally did the deal on Friday with a bail out package and everyone breathed a sigh of relief.
All except Wall St. who don`t believe it will work and the DJones dropped 157 poits after being up over 200 points.

Germany has safeguarded their savers but Darling and Brown are still dithering!

What a massive mess all round,caused by greedy banks and politicians with no backbones.