Icesave - 11 Days Later & We Are No Wiser

KingL

This has been discussed further up the thead. Post #41 reproduces the text from the FSCS site. To me, it reads like it applies only to end-of-term interest payees (i.e. not the monthlies). If that is the case, it wouldn't change anything for them.

This seems to be a new development. Presumably there will be some authoritative clarification forthcoming as it gets kicked-around more.

Transalper

From FCSC report 17 Oct

The Authorities hope to settle the process over the coming days, and expect to issue guidance next week about how savers will be able to claim their money.

This is the only part of the update that we were waiting a week to receive that was actually news. Taking this last sentence to bits means, “coming days” There are 365 days in a year, coming days is same as how long is a piece of string to me. “Guidance next week” Just a guide, no official forms, could mean anything!
My heart go’s out to the folk that needed their money in the next few weeks due to house deposits, weddings and people who just need the interest paid to keep warm over the winter this year. This is why we should inform the MPs and FSCS, send them a letter outlining our disgust. As I said in a previous post it is just NOT acceptable to be kept in the dark, they won’t read every mail out loud but if they get an awful lot at the same time about the same thing they WILL notice. It just might mean the difference of giving us the next instalment of spin next week or some positive news.

meanmachine_2

Quite.

There'll be another watery "update" at the tail end of next week.

Some people on here will swallow it hook, line and sinker while the rest of us will continue to pull out what remains of our hair, knowing deep down that the chances of us getting our money back have grown that much slimmer.

Terrible situation.

tweet

"knowing deep down that the chances of us getting our money back have grown that much slimmer"

By slimmer you do mean 'exactly the same' don't you? Nothing has changed.

ed123_2

...I heard the Moneybox programme and they were talking about the payments going out over weeks not months and within the eu 3 months limit. The statement that fixed term accounts will be paid up to the time the bond matures ties in with the fscs regulation note 8 on their website.

polyphonic99

Update from the BBC's Moneybox program 18th October.

MoneyBox presenter Paul Lewis interviewing fellow MB journalist Bob Howard

“Well Paul the good news for people with fixed term bonds is that they will get the interest paid up until the date they mature, but the bad news is, that as things stand, people who rely on monthly interest payments as income, won’t get this interest now until the bond matures. So if you recently took out a 3 year bond that could be in 3 years time and for people with ordinary savings accounts, interest stopped being payable from the 8th of this month, when Icesave was declared in default.”
http://news.bbc.co.uk/1/hi/programmes/moneybox/

The piece is about 12 minutes into the program
It would have been more reassuring if Paul Lewis had been interviewing someone directly from the FSCS, but one assumes Bob Howard was quoting what the FSCS had told him.

agsnu

bryanb wrote: »

Err, Iceland is not a member of the EU

Iceland is however a member of the EEA and has ratified a number of EU laws, including the one in question.

meanmachine_2

ed123 wrote: »

...I heard the Moneybox programme and they were talking about the payments going out over weeks not months and within the eu 3 months limit. The statement that fixed term accounts will be paid up to the time the bond matures ties in with the fscs regulation note 8 on their website.

I don't quite understand why bond holders will keep earning interest, and yet instant access account holders will get nothing.

Surely all accounts are now anything but "instant access".

Ludicrous situation that surely can't be allowed to drag on...

tweet

I'd guess bond holders will not get their initial lump sum nor their interest earned until the maturity date as this would enable them to reinvest the bond lump sum and effectively earn interest on that elsewhere, while it's earning interest in Icesave/FSCS at the same time.

Non fixed-rate accounts, again I'm guessing, will simply get their money back sooner - weeks, not years - so lost interest isn't as such a big deal.

bryanb

agsnu wrote: »

Iceland is however a member of the EEA and has ratified a number of EU laws, including the one in question.

I've tried to substantiate this, but can only find it mentioned in Mail on line. Can you give a reference please?