Icesave - 11 Days Later & We Are No Wiser

Optimist

bryanb wrote: »

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

http://ec.europa.eu/external_relations/iceland/index_en.htm

KingL

polyphonic99 wrote: »

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.

Thanks for this info. Also worth pointing out is Bob Howard's further point:

"I should say, Paul, the scheme's Director of claims told me he is looking at feedback from customers on the issue of interest, so there could yet be changes".

Plasticman

Any views on what the 'innovative solution' (alternative to the paper form) will be? I wonder whether they are planning to bring the Icesave site back into use and to permit people to transfer the money into their linked account? That may explain the £100m 'loan' given by the UK government to keep things running.

London05

As ICESAVE have all our details & our link banked account numbers just push the refund button I say - much quicker than form filling or is this a chance for some temp work for finance workers before Xmas. I have a bit of free time so will volunteer, 34 years experience in accounts and a very good eye for details - how much are they paying?

If we have to fill out forms, in the case of a joint account who claims or do we claim half each?

bryanb

Optimist wrote: »

http://ec.europa.eu/external_relations/iceland/index_en.htm

Having briefly looked at this reference it is clear that in this respect Iceland is subject to EU laws. However I am trying to establish that EU law actually says compensation should be paid within 3 months. As said before I cannot find a reference unless you count the Mail.

altocumulus

agsnu wrote: »

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

And a fat lot of good that did them / us !!!!

( The reference was also in the print on the Icesave web site and other docs - one of their "selling" points )...

elektra

tweet wrote: »

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.

so as I understand the above

Those who have bonds yet to mature will lose nothing

those who have bonds already matured or will mature before we get money back and those that have non fixed accounts have lost access and will lose interest.

tr98

tweet wrote: »

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.

Wouldn't this approach cost the FSCS more money in the long-term?

If the bonds are frozen until maturity, then the FSCS also has to pay for the accrued interest.

But surely if we're repaid the total balance now, we can reinvest that money with another financial institution, which will then be paying the future interest.


Apologies if my logic seems a bit simple!

tweet

tr98 you'd think that, along with allowing customers to simply withdraw funds, would be the easiest way - but things are never so simple in the government

No idea what they'll do, was only speculating; I suppose bonds are themselves invested elsewhere to get a return and they can't just call those in until their term finishes.

It'll cost them money, sure, but nothing compared to the £4bln or so in capital to return. Guess we just have to wait and see.

altocumulus

London05 wrote: »

As ICESAVE have all our details & our link banked account numbers just push the refund button I say - much quicker than form filling or is this a chance for some temp work for finance workers before Xmas. I have a bit of free time so will volunteer, 34 years experience in accounts and a very good eye for details - how much are they paying?

If we have to fill out forms, in the case of a joint account who claims or do we claim half each?

Far too simple .... :rotfl: