Icesave compensation payouts... how to keep the pressure up

MIKELSOK

Given the article in the FT today I think it was where the British Government are lending Iceland some £3Bn (can you believe that!) so that they can pay us Icesave account holders back. Then, the very least the Icelandic authorities can do is to ensure that the Icesave accounts are re-activated and we can dispense with the whole palava of going through a claim process. If they can do it for Kaupthing they can do it for Icesave.

Sorry if this has already been suggested but not had time to read the plethora of postings on Icesave.;)

meunier

I got this reply from the FSCS today - which varies slightly from the other quoted ones - and does, indeed, confirm that they are looking at what to do re the 'accrued' interest for fixed term savers. My hunch is - and to be fair - that they will pay interest up to the date of collapse (8th October) and then will return capital sums - otherwise they will simply be extending the pain both for themselves and us. If they don't do this, I very much hope they do allow for some kind of penalty so that those of us who just want our money back - with less innocence than before - yet much more interim turmoil - can begin again sooner than naught.

I am sorry to hear about the position you find yourself in. We have noted your comments, and fully understand your concerns.

As you may be aware, Senior Management here at the Financial Services Compensation Scheme (FSCS), together with H M Treasury, the Financial Services Authority and the Icelandic authorities, are working as quickly as possible to bring matters regarding Icesave to a conclusion. This will ensure that we can start paying out compensation to eligible claimants.

We are aware that many savers with Icesave are anxious about their savings. Following the Chancellor's announcement retail depositors can be confident they will be paid in full. Please rest assured that we are working closely with all concerned on the practical arrangements to get people their money back as quickly as possible.
I can confirm that interest owed to eligible depositors as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. In general terms, as stated on our website, notice accounts are paid as if notice had been served on the day the account was frozen and payment is made, including interest, at the end of the notice period. Fixed term accounts are paid at the maturity date with the interest that would have been paid by the bank at maturity date.

However, we are still looking into the issue of accrued interest, and whether the above will apply to eligible Icesave claimants, in the specific circumstances applying to that bank. As you may know, our website (http://www.fscs.org.uk) was updated on Friday 17 October, with the most up-to-date information on progress for claims against Icesave. Please be assured our website will be updated as soon as we have further progress to report regarding all aspects of claims against Icesave.

I trust that the above has clarified the current situation. However, should you have any further questions, please contact me, or one of my colleagues, on our helpline 0207 892 7300.

Thank you for the patience you have shown to date, please bear with us for a little longer whilst matters are concluded.

nilrem_2

Thanks for posting your reply meunier.

Reading through it appears that nothing is cast in stone, OTOH it says

Fixed term accounts are paid at the maturity date with the interest that would have been paid by the bank at maturity date.

but then goes on to state

we are still looking into the issue of accrued interest, and whether the above will apply to eligible Icesave claimants, in the specific circumstances applying to that bank.

Which suggests that interest might not be paid?

KingL

Yes, surely that's the point they are making? The first statement reflects their standard policy, the second one is saying that they are looking at treadtment of Icesave as a special /exceptional case.

It is also possible that those 'special' considerations results in a better conclusion for savers, rather than a worse one.

nilrem_2

KingL wrote: »

Yes, surely that's the point they are making? The first statement reflects their standard policy, the second one is saying that they are looking at treadtment of Icesave as a special /exceptional case.

It is also possible that those 'special' considerations results in a better conclusion for savers, rather than a worse one.

Ah Right, I took it the other way around!

daisycutter

There still seems to be some confusion re. how Term deposits paying monthly interest will be treated. The above FSCS statement covers only Fixed Term deposits where interest would have been 'paid at Maturity'. What about those paying monthly interest?? There have been comments that there will be no monthly interest paid on these Accounts. Surely these Accounts would be in default if monthly payments are not received? If so then compensation is payable under EC law, which means that the Capital must be returned. As my wife & I are Pensioners we rely on the Interest payments to pay our Electricity bill and Council Tax - not getting anything until Feb 2010 would put us in severe difficulties, as I imagine it would many other depositors.

If this is not the case it seems that I could take out an Interest only Mortgage on my house and after a couple of payments tell the Bank that I had now decided to pay it all at the end of the term - I wonder if that would receive sympathetic consideration from the Bank?

I e-mailed the FSCS yesterday on this point - no reply yet but I will post the reply when it arrives.

nilrem_2

daisycutter wrote: »

There still seems to be some confusion re. how Term deposits paying monthly interest will be treated. The above FSCS statement covers only Fixed Term deposits where interest would have been 'paid at Maturity'. What about those paying monthly interest?? There have been comments that there will be no monthly interest paid on these Accounts. Surely these Accounts would be in default if monthly payments are not received? If so then compensation is payable under EC law, which means that the Capital must be returned. As my wife & I are Pensioners we rely on the Interest payments to pay our Electricity bill and Council Tax - not getting anything until Feb 2010 would put us in severe difficulties, as I imagine it would many other depositors.

If this is not the case it seems that I could take out an Interest only Mortgage on my house and after a couple of payments tell the Bank that I had now decided to pay it all at the end of the term - I wonder if that would receive sympathetic consideration from the Bank?

I e-mailed the FSCS yesterday on this point - no reply yet but I will post the reply when it arrives.

I don't think anyone even the FSCS knows how the interest will be handled at the moment.

daisycutter

nilrem wrote: »

I don't think anyone even the FSCS knows how the interest will be handled at the moment.

Well they have had long enough to think about it - it's not rocket science!

T'Pau

Who was it that said 'No news is good news'? :mad:

T'Pau

Amazingly Iceland still sees itself as the injured party! :mad:

See here. Cheeky 2@!

Is there a British delegation there or not?