Kaupthing Edge - Unable to Withdraw!!!

frames1_uk

sloughflint wrote: »

You are correct but backfoot was talking about KE;)

wonder why KE allow but not Icesave?

nzseries1

frames1_uk wrote: »

wonder why KE allow but not Icesave?

cos they're better.

backfoot

sloughflint wrote: »

I don't think that's the case. Interest would be calculated to date of closure albeit -1%.

'3.2 Novation Kaupthing Singer & Friedlander Limited may, by notice to you, novate the contract between it and you (comprising the Terms and Conditions) to Kaupthing Bank hf. This means that from the date of the notice to you, all of Kaupthing Singer & Friedlander Limited’s rights and obligations to you will be transferred to Kaupthing Bank hf, with whom you will have a contract comprising the Terms and Conditions. From that date, your rights and obligations under the Terms and Conditions will be with Kaupthing Bank hf. Kaupthing Singer & Friedlander Limited will notify you of that novation through one of the Communication Methods. You consent to that novation.'

I take this to mean that irrespective of whether the UK arm is bust or not,they can novate to KE hf. In those circumstances,where they aren't bust I would expect any withdrawal to be penalised by the -1% and you lose accrued interest.

I checked with the FSCS on Friday that under the UK Scheme, accrued interest would be compensated up to the point of failure. There then comes the technicality of whether the Icelandic Scheme would do the same. If they didn't would the UK Scheme then come to the rescue. I expect they would but I didn't envisage this scenario when I spoke to them, so I can't be definite.

Do you know for sure?

noh

As stated several times already.
On early closure of a fixed rate deal with KE there is no loss of accured interest. You will receive interest calculated on a daily basis at the break rate which is 1% less than rate you would receive if left for the full term.

Nigel

edwinac_2

backfoot wrote: »

'3.2 Novation Kaupthing Singer & Friedlander Limited may, by notice to you, novate the contract between it and you (comprising the Terms and Conditions) to Kaupthing Bank hf. This means that from the date of the notice to you, all of Kaupthing Singer & Friedlander Limited’s rights and obligations to you will be transferred to Kaupthing Bank hf, with whom you will have a contract comprising the Terms and Conditions. From that date, your rights and obligations under the Terms and Conditions will be with Kaupthing Bank hf. Kaupthing Singer & Friedlander Limited will notify you of that novation through one of the Communication Methods. You consent to that novation.'

I take this to mean that irrespective of whether the UK arm is bust or not,they can novate to KE hf. In those circumstances,where they aren't bust I would expect any withdrawal to be penalised by the -1% and you lose accrued interest.

I checked with the FSCS on Friday that under the UK Scheme, accrued interest would be compensated up to the point of failure. There then comes the technicality of whether the Icelandic Scheme would do the same. If they didn't would the UK Scheme then come to the rescue. I expect they would but I didn't envisage this scenario when I spoke to them, so I can't be definite.

Do you know for sure?

Thanks for posting this, backfoot, even if it is very worrying. I don't know the answer to your questions, but have my own to ask..

I don't see any mention of Kaupthing giving 30 days' notice before the novation becomes effective. Where is this written? Additionally, what are the Communication Methods mentioned in the opening paragraph? Will there be formal written notice to each depositor, or just an advert in the press to advise of novation? Presumably, once the contract is novated to KE hf, Icelandic rather than English law will apply.

This looks even worse.

noh

Unless I'm mistaken the new KE Terms and Conditions dated 6th October 2008 do not contain the novation clause.

http://www.kaupthingedge.co.uk/Includes/PDF/tandcs.pdf

Nigel

TCA

I set up 2 withdrawals for the 6th and 7th October and yet my balance remains the same as of today (7th - albeit just after midnight) and my future and pending transactions which were showing before, are now sitting in the messages outbox.

Anybody know if this is normal?

backfoot

noh wrote: »

Unless I'm mistaken the new KE Terms and Conditions dated 6th October 2008 do not contain the novation clause.

http://www.kaupthingedge.co.uk/Includes/PDF/tandcs.pdf

Nigel

Fascinating!

The terms and conditions have changed. The ones currently on their website are updated to reflect the £50k compensation limit and have removed the Novation Clause . There is no mention of the Icelandic Scheme whatsoever.

These are recent changes because I had looked into this on another forum only in the last couple of weeks.Nothing was sent regarding the changes to the T&C's.

Does one draw the conclusion that they now feel there is more security fully under the UK scheme and this may prevent on a run on Deposits? Certainly,the uncertainty with Icesave and the Icelandic scheme makes KE look slightly better at the moment.