At what point could ICESAVE legally stop withdrawels

JustTakeAllMyMoney

I did a BACs on Sunday, money didnt turn up today just logged into ICESAVE and can see the money has been reversed and now shows as a 'correction'. The time line of the transaction was,

-Sun 5 Oct = Makes BACs payment out
-Mon 6 Oct = Processed
-Tue 7 Oct = Cleared

so the transaction was cleared on the 7th but returned on the 8th, looks wrong to me.

Farway

May look wrong, may even be wrong, but as the UK Government have now guaranteed 100 % all your savings with Icesave this is no longer a problem as your money is safe.

In all honesty you [& the rest of us] are now chaff in the financial winds, so right or wrong, you will have to just accept it & get on with life

climbgirl

They still haven't actually been declared insolvent yet! That's what is amazing me about this whole process - they've frozen access to our money for 2 whole days now (almost!) but they haven't yet declared insolvency to allow the claims process to start taking place.

How long can they legally leave us in this limbo for?

manhattan

They are probably stalling things so their fellow Icelanders get a chance to empty their IceSave accounts first.

silvercar

I know CHAPS can be recalled upto the end of the business day the transaction is made.

So a transaction made after (approx) 3pm on friday could be recalled until the end of monday.

marklee

climbgirl wrote: »

How long can they legally leave us in this limbo for?

Apparently they can do it for 60 days, if you look at the account terms and conditions:

10f. In very exceptional circumstances only, to enable us to comply with legal requirements and maintain appropriate liquidity levels, we may temporarily cease or limit withdrawals from accounts for up to 60 days. This limitation on withdrawals will apply even if we have already received notice of a withdrawal from your account. Money in your account will still earn interest during any such period and we will follow any instructions received during the period of suspension once this period has finished.

On the plus side, at least they say that your funds will still earn interest.

edwinac_2

climbgirl wrote: »

They still haven't actually been declared insolvent yet! That's what is amazing me about this whole process - they've frozen access to our money for 2 whole days now (almost!) but they haven't yet declared insolvency to allow the claims process to start taking place.

How long can they legally leave us in this limbo for?

I am arguing in another thread that the freezing of customers accounts on Monday - the day before the Icelandic government took control of Icesave bank - was possibly criminal.

There seem to be a couple of, erm, characters of interest, who are working conscientiously on the forum to discredit that particular allegation...

Decide for yourself.

Edit: I stand corrected by 'marklee' - who has unearthed a scarcely believable clause that allows Icesave to freeze accounts for up to 60 days.

Edit2: Although how do you interpret that wording?

Should it be interpreted as meaning Icesave may stop withdrawals only "as a legal requirement", or does it mean "only as legal requirement OR to maintain liquidity levels"?

forevergrey

silvercar wrote: »

I know CHAPS can be recalled upto the end of the business day the transaction is made.

So a transaction made after (approx) 3pm on friday could be recalled until the end of monday.

Sivercar, out of interest where did you get that info from?

I rang HSBC this morning to check that the CHAPS credited to my account on Monday afternoon couldn't be recalled and was told that although the issuing bank can recall eg because of an error, that this cannot be done be done without the permission of the payee once it is in their account.

luvpump

Farway wrote: »

May look wrong, may even be wrong, but as the UK Government have now guaranteed 100 % all your savings with Icesave this is no longer a problem as your money is safe.

In all honesty you [& the rest of us] are now chaff in the financial winds, so right or wrong, you will have to just accept it & get on with life

I agree, So they did something "Illegal" .. so what ?? make no differance at the moment, there isnt a big policeman to go and knock on Landisbanks door and nick them !!!

marklee

edwinac wrote: »

Edit: I stand corrected by 'marklee' - who has unearthed a scarcely believable clause that allows Icesave to freeze accounts for up to 60 days.

Edit2: Although how do you interpret that wording?

Should it be interpreted as meaning Icesave may stop withdrawals only "as a legal requirement", or does it mean "only as legal requirement OR to maintain liquidity levels"?

I should add that I'm not trying to discredit any allegations of criminality! (Not sure if you were referring to me or not)

My gut feeling reading that clause is that it is EITHER for legal requirements OR for maintaining liquidity levels. Which pretty much gives them free reign to suspend accounts whenever they want, as they can dictate what they consider to be "necessary" liquidity levels.

snikpoh

JustTakeAllMyMoney wrote: »

I did a BACs on Sunday, money didnt turn up today just logged into ICESAVE and can see the money has been reversed and now shows as a 'correction'. The time line of the transaction was,

-Sun 5 Oct = Makes BACs payment out
-Mon 6 Oct = Processed
-Tue 7 Oct = Cleared

so the transaction was cleared on the 7th but returned on the 8th, looks wrong to me.

Same for me. I transferred about 100k VERY early on Monday - two hours later I checked and it said Processed and Cleared. Today I check and it has been returned as a correction.

If it's cleared, how it be recalled?

Let's hope we do get some compensation - any one know how long this might take?