Icesave 'accelerated payouts'

Young_Offender

Regarding the joint statement about 'significant progress' in Iceland over the weekend, I wonder what an 'accelerated payout' for Icesave depositors might mean in practice?

http://www.fscs.org.uk/consumer/

Say that the Icelandic government got a loan from the UK (or the IMF) to meet its obligations, it could presumably reimburse all savers without any recourse to application forms, etc. Surely it could just send everyone a BACS payment for their outstanding balance (plus interest to the date of default) to their nominated account. The word 'accelerated' suggests something like this might be on the cards, because processing 300,000 forms would of course be grindingly slow. Admittedly the situation for those with ISAs is more complex, but for all those with easy access or bond accounts I can't see any obstacle to instant reimbursement once the funds are available.

f_@_w_y

Well... in an ideal world, this should happen. However, it will not be that simple as it looks.

The authorities need to match the amounts (in our record and in theirs) before doing something. Think, of someone who can make a false e-statement and claim hundreds and thousands of our money. The authorities need to make sure, something like that not happen.

When ever there is a panic or situation like this in a society, looting may start! The authorities need to make sure, this wont happen.

Anyhow, the gud news is... we will get our money back. May be, by christmas (at max). :rolleyes:

ExBanker_2

For those of us with Isa's in Icesave- I would be interested to learn how we will continue to benefit from the Isa tax free wrapper.

If the government paid via BACS into our account, the money would simply become taxable again. For this reason i don' think it will be as staight forward as a simple BACS transfer..

meunier

Just to let people know, I just got off the phone with a very nice chap at the FSCS and during our conversation he said that people who had fixed term bonds with Icesave would be given their capital sum back at the time of payment and would not be required to complete their stated term because the original term agreement itself will have been defaulted by the fall of the bank.

I should think the length of time taken in getting the money back will, in part, be calculated by the level of complication of each application.

f_@_w_y

And what about interest???

noh

meunier wrote: »

Just to let people know, I just got off the phone with a very nice chap at the FSCS and during our conversation he said that people who had fixed term bonds with Icesave would be given their capital sum back at the time of payment and would not be required to complete their stated term because the original term agreement itself will have been defaulted by the fall of the bank. ...........

Plus interest?