Icesave - 11 Days Later & We Are No Wiser

thomas0735

First of all a GREAT BIG THANK YOU to Martin and everyone at MSE. Nobody in our house blames you for our money being stuck n Icesave as you explained the risks before we opened our account and you kept us informed throughout and we know that you will be there every step of the way to help us as we try to reclaim our money! We think Martin deserves a knighthood as through his invaluable advice and help we have saved and reclaimed lots of money, over the past two years since I discovered this site and I am always telling everyone, even complete strangers, that for any advice whatsoever to alsways check out MSE for advise and to sign up for the weekly newsletter and we even drive around with Martin's car sticker proudly on the rear view windown for everyone to see.

Now for my query. My mum has an ISA with Icesave, but has been away till recently so today was the first day I was able to have her login details (I help her with computer issues as my mom isn't very computer savvy LOL). Now following the advice given, we printed off a copy of her Icesave account ready for when she can start reclaiming her money but there was a question that arose from it and I'm hoping someone here might be able to help.

On the 2nd October a DD went into my mom's ISA of £35 but hadn't cleared on the 9th October which is when her account became frozen. Therefore on her statement she has two different figures, one the proccessed balance as of the 9th October, which includes the £35 DD and one the cleared balance as of 9th October which is minus the £35. Will the £35 have cleared as I have checked and the £35 hasn't gone back into her original account?

Thanks again to Martin and the team and averyone else for their help

X123

thomas0735 wrote: »

On the 2nd October a DD went into my mom's ISA of £35 but hadn't cleared on the 9th October which is when her account became frozen. Therefore on her statement she has two different figures, one the proccessed balance as of the 9th October, which includes the £35 DD and one the cleared balance as of 9th October which is minus the £35. Will the £35 have cleared as I have checked and the £35 hasn't gone back into her original account?

I think for claims purposes (big THINK here as nowt confirmed yet!) a bank statement for the a/c that put the £35 into her Icesave a/c could serve as evidence that it went in. I read this somewhere - think this may be better answered by the fscs when we know whats going on tho...Good Luck!

moola_3

innovate wrote: »

Another observation regarding the disquiet about how long things are taking at the FSCS:

1. if the FSCS weren't dealing with the entire claim, we'd all have to file claims with the icelandic authority. Do you think they'd be awfully quick in paying us, given the whole country appears to be bancrupt, and given Haarde's scathing remarks over the last couple of weeks?
2. some people will get a lot more than the £50K normally guaranteed

In light of this, and given that the FSCS have so far kept all their promises, I think it is really a bit premature to go complaining now. However, each to their own.

My guess is that when the government stepped in with the guarantees it has given, most ppl were, like me, relieved, and even to a degree, thankful. It then became reasonable to shut up for the moment and give the process a chance to work.

However, we should not forget the way government operates: it focuses primarily on matters in the news, of great public concern and where there is pressure for them to act, but shows a great capacity for ignoring matters that have drifted out of the spotlight.

There is no reason that I can see why the claims process could not have begun by now even if the situation remains unresolved with Iceland, as I suspect it does. Unless, of course, they have still not settled the matter of whether the first part of the claim will have to be sent to Iceland.

Anyway, I don't see any reason why we should not start putting some polite but firm pressure on the FSCS. The UK and Icelandic governments can apparently still get on in a friendly manner at meetings whilst simultaneously suing each other. I know of no legal reason why we should not be sending off written claims to the FSCS in the absence of any forms. After all, Icesave has been declared in default - all that is necessary for a legitimate claim, form or no form.

MG1

Just received a reply to a query I sent to FSCS regarding interest on Fixed Rate Icesave accounts.

'Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date'

To those of us who have fixed rate accounts it would appear that we will get back the capital and interest but not until the end of the fixed rate term.I suppose this is good in some ways in that we will not be losing any interest while the FSCS are dragging their feet but the bad news is that you won't see your capital or any interest until the end of the fixed rate term.

moola_3

MG1 wrote: »

To those of us who have fixed rate accounts it would appear that we will get back the capital and interest but not until the end of the fixed rate term.I suppose this is good in some ways in that we will not be losing any interest while the FSCS are dragging their feet but the bad news is that you won't see your capital or any interest until the end of the fixed rate term.

I'm not clear what this means. Fixed term accounts may have monthly interest payments and the option of closing the account early with an approriate interest penalty. If I were to default on my mortgage payments the whole mortgage would be immediately due for repayment regardless of term. Ah, but then I made the mistake of being a punter rather than a banker.

cos69

MG1 wrote: »

Just received a reply to a query I sent to FSCS regarding interest on Fixed Rate Icesave accounts.

'Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date'

To those of us who have fixed rate accounts it would appear that we will get back the capital and interest but not until the end of the fixed rate term.I suppose this is good in some ways in that we will not be losing any interest while the FSCS are dragging their feet but the bad news is that you won't see your capital or any interest until the end of the fixed rate term.

all you got was the answer published in the FAQ on the FSCS website - already widely quoted in numerous threads. They may or may not decide to go down that route for fixed rate savings as also widely reported in numerous threads.

What we need is a statement to be published by the FSCS to clarify what they will do in the specific case of Icesave

EBG

Is it wise for everyone to keep sending letters and emails to the FSCS. If they have to deal with everyones complaints surely they wont be able to deal with the business of getting our money to us!!!

I personally think we should all calm down and wait a few more days to allow them to deal with the main issue of getting our money back to us!!!

Having to reply to everyones queries will only delay things longer.

MG1

If you think about it this solution would make a lot of sense to the FSCS. Like a lot of these compensation schemes the FSCS is not or could not possible be fully funded to cover the possibility of a bank going into meltdown. It relies on top up payment from the participating banks which could be financed in the short term by borrowing from the Bank of England directly.Therefore it is surely better for them to pay out as and when accounts mature rather than paying everything out in a lump sum now.I would think that in this environment the last thing the participating banks need is another call on their limited capital. Apologies is someone has already posted the replay I received but gimme a break I only joined this forum today and I am only trying to help !

Optimist

EBG wrote: »

Is it wise for everyone to keep sending letters and emails to the FSCS. If they have to deal with everyones complaints surely they wont be able to deal with the business of getting our money to us!!!

I personally think we should all calm down and wait a few more days to allow them to deal with the main issue of getting our money back to us!!!

Having to reply to everyones queries will only delay things longer.

Thats ok, they don't reply, its just a automatic response with a standard letter.

moola_3

MG1 wrote: »

If you think about it this solution would make a lot of sense to the FSCS. Like a lot of these compensation schemes the FSCS is not or could not possible be fully funded to cover the possibility of a bank going into meltdown. It relies on top up payment from the participating banks which could be financed in the short term by borrowing from the Bank of England directly.Therefore it is surely better for them to pay out as and when accounts mature rather than paying everything out in a lump sum now.I would think that in this environment the last thing the participating banks need is another call on their limited capital. Apologies is someone has already posted the replay I received but gimme a break I only joined this forum today and I am only trying to help !

Maturity is surely the date the bank is declared in default? After that point one can't be said to have an account to mature by definition - that is the meaning of default.