Icesave FSCS comp news?

langtoft_lad

All this talk of forms - I suspect that as the FSCS hasn't actually had to process any compensation claims upto now, that no-one has actually got any forms - they'll have to design them from scratch, so a committee will have to be constituted to decide what information will be required, no doubt the draft form will have to be approved by any number of other departments to ensure it doesn't infringe any data protection, EU, disability, ethnic or any other PC legislation.
Then obviously it has to be decided which budget is tapped for the cash, after all the compo isn't strictly in accordance with the laid down rules.
The wheels of British bureaucracy grind exceedingly slow - urgency is probably not on the FSCS priority list - unfortunately.
In an ideal world they'd get a list of accounts & balances... and write cheques... and worry about the paperwork later...

chodges84

I am quite please with the progress so far.

We have to remember that not only have the FSA never done this, but it involves a foreign country outside the EU and that country is on the verge of bankruptcy.

I'm gutted that it has come to this but I'm pleased that I should get my money back. I don't expect it to be sorted by the end of the month, but I think it should all be wrapped up by the end of the year which is good enough for me.

luvpump

bryanb wrote: »

Some of us "ordinary depositors" rely on the monthly interest payments to live on. Naturally we can survive for a while, but basically no interest payment means financial hardship.

Like an earlier poster, i too am just glad i will be getting it back at all !!!!

Chris2685

I wish it was just as easy as me filling out a form to move my ISA to a new bank, and the the government promised that bank to pay the outstanding balance directly to that bank. Effectively like the bank giving a loan to customers until the FSCS pays the bank... surely that would be possible and help 'share the load'?

andy_l_2

Don't whinge just be thankful were getting it back.

nilrem_2

I'm sure i read somewhere (on-line paper i think) that this whole thing may take uptill christmas to resolve!

You don't want to believe evrything you read in a paper, especially an online one, how could they know how long? Even the FSCS do not know how long it will take.

Having said that it may well take till Christmas (it's only a few weeks away) but it's a damn sight better than us having to go to Iceland to try for compensation!

Trollfever

If this gets into the courts, the lawyers will argue about it for years.

dag_2

Since Wednesday, FSCS and the other UK authorities involved have been working together and with the Icelandic authorities to establish the best process for getting you your compensation entitlement, having regard to the Icelandic Fund's responsibilities, our own obligations and the Chancellor's announcement.

Hmm. Seems obvious to me. Pay out the FSCS obligation first, and then the money that the Chancellor announced second. Meanwhile, go chasing after the Icelandic Fund. If it turns out that the Icelandic Fund does pay out after all, then the Chancellor can have some of his money back.

Or maybe I'm overlooking something obvious?

All this talk of forms - I suspect that as the FSCS hasn't actually had to process any compensation claims upto now, that no-one has actually got any forms

Well, I know that when someone pops their clogs and you were on the will, it can take a while to get your money. So perhaps this is a similar situation.

Perhaps it's the case that the FSCS can't decide how much money from their own scheme they need to put into it until they've taken stock off all of Icesave's assets (do they still have any?) and tried to sell them off.

And what exactly was it that the Chancellor announced anyway? He didn't offer an advance on the FSCS payout, did he? Or did he just offer a top-up? If he only offered a top-up, then again, the FSCS has to figure out what they will pay before the Chancellor statement applies.

I really have no idea, I'm only guessing. However, perhaps part of the reason for the form is to find out where they should send the payment.

You might think that they would be able to find out all the linked accounts for each customer from the Icesave records, and that they could just send the money to these linked accounts without bothering with a form. However, as you may have noticed, banks do go bust from time to time, especially in times like this. So there's a possibility that the bank with which you hold the current account, that you registered with Icesave as a "linked" account, may have gone bust before FSCS are in a position to be able to pay you.

Similarly, they can't just post you a cheque, because you might not be at the same address. Especially if you have been evicted for rent and/or mortgage arrears as a result of not having had your money. You know, these things do happen, what with there being a credit crunch going on right now. And so that's why they need you to fill in the form.

I presume that if you don't send the form back to them within a reasonable amount of time, then they will ramp up their investigative efforts to try to track you down. Then again, maybe I'm too optimistic!

Plasticman

If it does get the point of having to claim the money back by a paper form, I'm guessing that they will have to employ a whole load of people to process them. Unless they use the existing Icesave staff (who aren't actually employed by Icesave anyway).

Swipe

It's looking almost certain that it will result in claiming via a paper form. Maybe they could do it electronically via their website but I'd imagine it would take too long to set that system up and test for security etc.