Compensation? - What compensation?!!

ma5k

(Sorry, I'm new so not sure if I posted this in the right place)

All the reassurance I have seen is based around the FSCS compensation scheme. Even if it could cope in term of resourses, just how well would it perform in practice?...

For example; take someone who has managed to scrape together 6 months mortgage payments to cover against redundency & then finds themselves out of work and unable to access their savings in a crashed bank. Just how many hoops will they have to jump through and what kind of timescale until their claim might be processed & compensation paid? ...chances are their home would have been reposessed long before they got any money.

I sincerely believe this whole fear driven situation has got out of hand, but is it not prudent if we are relying on protection to question the likely performance of that protection?!

ma5k

Found this on another financial site:

"On 1 July 2008, fast-track payouts were proposed by Chancellor Alistair Darling to help repair consumer confidence. He proposed that savers who lose money when a bank goes under will be given compensation within a week."

midflight

"On 1 July 2008, fast-track payouts were proposed by Chancellor Alistair Darling to help repair consumer confidence. He proposed that savers who lose money when a bank goes under will be given compensation within a week."

LOL - about as likely as Martin Lewis and Kerry Katona hogging the Xmas Number One slot with a cover of Pink Floyd's "Money"...

lyndhurst25

ma5k wrote: »

(Sorry, I'm new so not sure if I posted this in the right place)

All the reassurance I have seen is based around the FSCS compensation scheme. Even if it could cope in term of resourses, just how well would it perform in practice?...

For example; take someone who has managed to scrape together 6 months mortgage payments to cover against redundency & then finds themselves out of work and unable to access their savings in a crashed bank. Just how many hoops will they have to jump through and what kind of timescale until their claim might be processed & compensation paid? ...chances are their home would have been reposessed long before they got any money.

I sincerely believe this whole fear driven situation has got out of hand, but is it not prudent if we are relying on protection to question the likely performance of that protection?!

Exactly the situation I am in. I've recently lost my job and my emergency fund is in an IceSave ISA. I'll have to beg, steal or borrow to make next month's mortgage repayment. Let's hope that the FSCS can get it's !!!! into gear and sort out refunds ASAP. Both the British and Icelandic governments know exactly how much they're going to have to cough up to cover their responsibilities. Any bail-out of the big banks while employing delaying tactics in compensating savers would certainly seal Gordon Brown's fate at the next election.

nachovx

ma5k wrote: »

Found this on another financial site:

"On 1 July 2008, fast-track payouts were proposed by Chancellor Alistair Darling to help repair consumer confidence. He proposed that savers who lose money when a bank goes under will be given compensation within a week."

That's a favourite trick of this government - they propose lots of things but never actually get round to implementing the good ones. They're just words to pacify the audience at the time - then they hope the situation will never arise when they need to put the thing into practice. When the situation does arise, you know they'll be as incompetent as they can be, that's this government.

opinions4u

Do the FSCS employ any staff to deal with 300,000 claims?

It ain't going to be quick folks.