Icesave - 11 Days Later & We Are No Wiser

oxocubes

Meadows wrote: »

I'll take a cheque thanks

Don't pay it in though, your bank might bounce.:D

pollyanna56

Just spoken to someone at FSCS and was told that the claim forms will be sent out within the next two weeks and that, due to the scale of the operation, it could take over three months to get our money back . As yet they are not clear on the procedure for ISAs.

Also spoke to customer services at Icesave who seemed to be under the impression that no interest will be paid out, though I think/hope that this is just down to lack of information on their part.

Has anyone who tried to transfer and close their account yet managed to access Icesave statements prior to 9th October? Mine now only shows account as opened on 9th October although the account number remains the same as before.

Baldur

pollyanna56 wrote: »

Also spoke to customer services at Icesave who seemed to be under the impression that no interest will be paid out, though I think/hope that this is just down to lack of information on their part.

This "What about my Icesave money?" article in the Mail suggests that interest will only be paid up to the date of defaut:

Am I still earning interest on my savings?
No. The FSCS will refund you some interest, but says that this will be calculated only up to the day that the bank was declared in default.

Paul_Herring

Lasertek wrote: »

It clearly states under the FSA - FSCS conditions that it can take up to 6 months for funds up to £35k and now up to £50k to be compensated.

Not on the FSCS site the rest of us has access to it doesn't.

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

6. How long will it take to process my claim?

After a declaration of default, FSCS aims to process all claims within six months. However, the time this takes depends very much on the type of claim. For example, most credit union claims can be completed within four weeks. For other types of claim it may take longer, depending on how complex it is and on some factors that may be outside of our control, such as waiting for information from third parties.

mjmal51

Baldur wrote: »

This "What about my Icesave money?" article in the Mail suggests that interest will only be paid up to the date of defaut:

Over the past week I remember seeing some people saying their Icesave accounts showing interest paid after the collapse. However looked at mine today, which is my monthly payment date and nothing showing. So looks as though the Mail is correct, this time, for me at least.

Seajays

Does anyone know how all this sits with the EU directive on deposit guarantee schemes, which seems to imply 3 months, except under exceptional circumstances?

Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes

Article 10

1. Deposit-guarantee schemes shall be in a position to pay duly verified claims by depositors in respect of unavailable deposits within three months of the date on which the competent authorities make the determination described in Article 1 (3) (i) or the judicial authority makes the ruling described in Article 1 (3) (ii).

2. In wholly exceptional circumstances and in special cases a guarantee scheme may apply to the competent authorities for an extension of the time limit. No such extension shall exceed three months. The competent authorities may, at the request of the guarantee scheme, grant no more than two further extensions, neither of which shall exceed three months.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31994L0019:EN:HTML

Also found the UK law that says the same thing:

The Credit Institutions (Protection of Depositors) Regulations 1995
30 - Compensation payments to depositors

(2A) In subsection (1) above ‘the relevant period’ means—

(a) the period of three months beginning with the time when the institution becomes insolvent; or
(b) that period and such additional period or periods, being not more than three and of not more than three months each, as the Bank may in exceptional circumstances allow.

http://www.opsi.gov.uk/SI/si1995/Uksi_19951442_en_4.htm#mdiv30

Although reading both those, it looks as though it could take up to 12 months in total, depending on how you define exceptional circumstances (like the Icelandic PM taking UK Government to court?!?)

LGG_2

mjmal51 wrote: »

Over the past week I remember seeing some people saying their Icesave accounts showing interest paid after the collapse. However looked at mine today, which is my monthly payment date and nothing showing. So looks as though the Mail is correct, this time, for me at least.

looking on my account the cleared and processed bit only goes upto 9 october so i presume the site was frozen (if thats the word to use) on the 9th and nothing has been added on since then.

Reaper

Seajays wrote: »

Does anyone know how all this sits with the EU directive on deposit guarantee schemes, which seems to imply 3 months, except under exceptional circumstances?

Meanwhile the FSCS says 6 months which is why I had to leave it vague in the FAQ.

Both, however, have wiggle room. The FSCS figure is a target not a legal maximum, while the EU/UK figure allows exceptions in exceptional circumstances. I think the government can easily argue that since banks have been going down like ninepins it is exceptional, plus there are international arguments about who is going to fund it. I'm sure the EU/UK were thinking of a single bank going under when they came up with that figure.

Seajays

Reaper wrote: »

Meanwhile the FSCS says 6 months which is why I had to leave it vague in the FAQ.

Yes - it's interesting that they say that isn't it - given that the legislation they operate under says three months. They must use the "exceptional circumstances" excuse so much they decided to say six just to be on the safe side! :rolleyes::D

EagerLearner

backnotes wrote: »

Icelandic Prime Minister's Office website http://eng.forsaetisraduneyti.is/news-and-articles/nr/3075 appears to confirm that negotiations were still under way yesterday on how the Icelandic part of the Icesave compensation for UK savers will be handled. That obviously doesn't prevent UK FSCS sending forms out and starting the compensation process, and it does indicate that resolving the Icesave UK savers issues is not bound up within a bigger overall dispute between Iceland and UK, which sound like good news.

Web site says:

"The British Government’s unprecedented actions against Kaupthing in the United Kingdom have led us to review our legal position vis-à-vis the British authorities. To that end, the Government of Iceland has appointed a British law firm, which is now working to prepare a case, and the Icelandic Government has also taken various measures to ensure that the British public is made aware of our point of view.

Despite the dispute that has arisen in relations between Iceland and the United Kingdom, both countries have emphasized resolving the issues connected to Landsbanki’s IceSave accounts. The same applies to IceSave accounts in the Netherlands.

Delegations from the Netherlands and the United Kingdom held meetings with Icelandic officials last weekend. Preliminary results have been achieved in talks between the Icelandic and Dutch delegations concerning a settlement between the two countries, subject to approval by the Althing.

No agreement has yet been concluded with the United Kingdom, but I am hopeful that an outcome will be achieved soon."

In bold above - so a British law firm are going to sue the British authorities, on behalf of Iceland? And in the meantime, I hear that the UK are proposing to lend Iceland millions of pounds - anyone else need a palm tree and some white sand