Will we see our Icesave cash before Christmas

AB31

In the case of Icesave accounts does anyone know what the position is regarding compensation for loss of interest between date of default and payout under the FSCS?

HERE is the FSCS's FAQs on claiming compensation. It doesn't refer specifically to interest. It might however be covered by Q9 even though that cites as an example investment claims.

"9. What do you mean by financial loss?

To be eligible for compensation you must have lost money because of your dealings with an authorised financial services firm. For example, for investment claims the compensation we pay would try to take account of the financial position you would have been in had you not invested." (my underlining)

jetfighter

I read somewhere that the FSCS would pay interest up to the date of default at the rate Icesave were paying, and from that date onwards would pay interest at the NS&I rate or something like that. I can't remember where I read it though, unfortunately, nor whether it was fact or not. It has been mentioned a couple of times on the forums but nobody seems to know for definite yet.

Plasticman

Yes, I've seen the same. Very surprising - I can understand interest being paid up to the point that Icesave went bust (because that it the money they owe people) but anything after that would seem very generous to me.

cwcw

Plasticman wrote: »

Yes, I've seen the same. Very surprising - I can understand interest being paid up to the point that Icesave went bust (because that it the money they owe people) but anything after that would seem very generous to me.

Given that compensation could take months and Darling promised no UK saver would lose "any money", I think anything other than interest equivalent to the Icesave rate is decidedly ungenerous. If this thing drags on for 6 months and no interest is paid since default, I will have effectively lost the best part of £1,000.

X123

:eek:Woah there!! Lets all chill out :cool: about this interest thing and be grateful that we have been promised our money back!! I can't help but feel that if I hadn't been so greedy in the first place my money wouldn't now be stuck in Iceland.

Fingers crossed we will still get the cash back and this awful mess will sort itself out without anymore casualties.

blemaearian

I am one of those unfortunates who have everything in Icesave. I had a standing order to my Lloyds TSB account to pay my rent. I have no idea how I am now going to cope. If I take a loan from LTSB, will Icesave cover the interest I shall have to pay on that loan? Does anyone know how I stand?

AB31

cwcw wrote: »

Given that compensation could take months and Darling promised no UK saver would lose "any money", I think anything other than interest equivalent to the Icesave rate is decidedly ungenerous. If this thing drags on for 6 months and no interest is paid since default, I will have effectively lost the best part of £1,000.

I agree. I can't see why anyone thinks it's generous to pay interest, especially if it takes months to settle the claims. To deny such payment would be inconsistent with the promise to ensure that no private saver loses out. I'm not expecting to be paid at the Icesave rate, and would be content with some lower figure (eg Bank Rate), but to get nothing after possibly several months seems unreasonable. However, as I said earlier, I haven't seen any media report referring to the payment of interest (except asking questions about it), and there doesn't appear to be anything specific on this matter in the FSCS itself based on what I have been able to find out by googling. There must be some "rules" on this somewhere, but they don't seem to be in the public domain.

nilrem_2

I can't help but feel that if I hadn't been so greedy in the first place my money wouldn't now be stuck in Iceland.

Now hold on there, you were not being greedy any more than the rest of us who saved in Icesave, the rates they paid were not that fantastic and in actual fact in the last few months much better rates were to be found elsewhere, this was not a tinpot savings outfit offering way over the top rates to encourage greedy gullible people it was a UK bank owned by an Icelandic company and operated in the UK, furthermore over the last 18months or so the media were all advising us that this was a safe and sensible place to go.

Had we placed our cash in the Acme bank of Nigeria offering 38% interest then that might be construed as greedy!

shindigger

edwinac wrote: »

Ad hominems, ad infinitum! Oh my!

This forum has a hard core of grunts who have nothing constructive to add. As a substitute for reasoned debate, they shoot the messenger instead. On a public access forum, that's their prerogative, I guess. But they should at least identify who the messenger actually is before they take aim..

In the case of the story about banks refusing to accept the promise of FSCS compensation as collateral for a loan - the story comes from Alice Ross at the Financial Times. And Ross quotes a spokesman at HM Treasury.

So it's hardly a "conspiracy theory", is it?!

See: Property chains face freeze, Financial Times, October 10 2008

It's disturbing that people here feel uncomfortable outside of their Alice-in-Wonderland world of make-belief. They are set on turning this forum into an intellectual vacuum where critical thinking is suspended indefinitely. They seek a haven where they can comfort each other with mindless platitudes like: "it will all be over by Christmas"..

The reality, as many see it, is somewhat harsher.

For those who don't care for my posts, I am really not fazed. Just pop me in your 'ignore' filter and get back to your Ga-Ga Land...

I typed 5 paragraphs in repsonse to this ghoul and then thought....nah.

KathysBoy

AB31 wrote: »

asking questions about it), and there doesn't appear to be anything specific on this matter in the FSCS itself based on what I have been able to find out by googling. There must be some "rules" on this somewhere, but they don't seem to be in the public domain.

The FSCS operate under a set of rules in the FSA Handbook., BUT beware it´s like wading through treacle. If you´re interested this is the link.

http://www.fsa.gov.uk/Pages/handbook/

They have the power to pay interest under their rules, but it is discretionary. This is the rule that gives them the power

COMP 11.2.7 The FSCS may pay interest on the compensation sum in such circumstances as it considers appropriate.


There have been a couple of forum comments where people have rung them up and they have confirmed that they will pay interest, but it´s not clear at what rate, but basically it seems to be between 3.5% and 4%