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

cwcw

I wrote to David Cameron, amongst others yesterday. His office replied, and is the only non-automated response I've had to date. It also sounded quite positive and I'm very pleased that his office has actually bothered to reply to me. Here it is:



I am writing on behalf of David Cameron to thank you for your e-mail, about the timing of compensation for Icesave customers.

We understand that this is an anxious time for you as you wait to recover your savings. We have been in touch with the Financial Services Compensation Scheme (FSCS) and have been told that a timetable for compensation will be published in the week beginning 27 October 2008. We understand that the FSCS has committed to paying compensation within weeks, rather than months.

I recommend that you keep in touch with the FSCS on 020 7892 7300. If compensation is not paid in the coming weeks, I would also suggest that you contact your local MP for assistance.

Icesave collapsed at a time when we had to rescue the banks to rescue the wider economy. The impact on the Icelandic economy is clear to see and it became unclear whether the Icelandic compensation scheme would honour the claims of UK depositors. The Chancellor decided that it was right to compensate all Icesave savers regardless of their deposit level. These factors have complicated matters for the FSCS. However, savers are entitled to be compensated promptly and I am concerned that constituents are unable to use money which is theirs. This is why Conservatives have called on FSCS compensation in all cases to be paid within one week of a claim being made.

Thank you, once again, for writing.

Bunk

Some good news! Payments to start from next month! Martin has the details:

http://forums.moneysavingexpert.com/showthread.html?t=1241791

randomnut

climbgirl wrote: »

Asking for information isn't unreasonable. All we have had officially is that the govt will cover all money in icesave. Anything after that can be boiled down to "we're working on it".

I understand this process takes time but they could tell us if they're going to pay upfront and claim back from Iceland for the taxpayer or if we have to wait for Iceland to pay first?

To have absolutely nothing concrete weeks after this happened isn't really good enough. It's understandable that people are concerned, there's a lot at stake.

Asking for info isn't unreasonable, you're right, but if they say they're working on it I can well believe it. I wouldn't imagine they've been able to agree if the UK will pay and then recover the funds or vice versa yet, probably they are waiting to see what kind of funds the Icelandic government can secure.

The government has said they guarantee our savings, lets be happy with that. If they want any chance of staying in power in the next election, they will NOT let us down, imagine the s**tstorm in the press if they were to bail.


Edit: Payments to start next month, info to follow shortly. See

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

zzyorkshirepuddingzz

arty4 wrote: »

sorry to be dim (?) but wot's 'via PM'? have been to the site and don't really want to get over involved in deciphering it all - would just like to register myself as suggested, but don't see how. thnx.

You go onto the Icescam website and click on Icesave support group and then when you get onto Proposed Icesavers Support Group click on Marks' name. You then get a page that has contact Mark, below PM send private message. If you click this, you can then send Mark your name and town. Hope this helps.

jem16

Update now on FSCS website. payments to start in November.

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

Lisa_J

An amendment of my original post. The FSCS says it intends to have a process in place in 10 days time... Here's their press release (with the really vital bit in bold)...


INFORMATION
Compensation on the way for Icesave customers through accelerated FSCS process

The more than 200,000 retail depositors with savings in Icesave UK, the topped up retail deposit business of the UK branch of Landsbanki, will get back their savings through an accelerated process, the Financial Services Compensation Scheme announced today.

The Government has guaranteed 100% of all deposits held by retail depositors of Icesave and has said that people will not lose their tax status for their ISAs. FSCS expects to launch the process in ten days time. Our top priorities are to give Icesave customers some certainty and to move to a speedy payout as quickly as possible.

The move comes two weeks after Icesave was declared in default by the Financial Services Authority (FSA). The FSCS has been working closely with the FSA and HM Treasury to achieve the best approach to repaying retail depositors of Icesave.

Subject to putting the final arrangements in place, FSCS expects to do this through an accelerated electronic process. This is expected to result in quicker payments and less inconvenience for retail depositors.

FSCS is putting in place a system that means retail depositors of the bank should be able to receive their savings through an electronic payment into their linked accounts. This will happen in stages. FSCS will write to retail depositors of the bank to detail how the process will work. FSCS will then contact customers again with instructions on how to complete a short electronic process to finish the transfer. The process will be phased to manage the flow of payments through the system and for security reasons.

In parallel, the authorities are also continuing to explore whether alternative solutions might provide an even better option for payout.
Loretta Minghella, Chief Executive of the FSCS, said: “We recognise that Icesave’s customers have been anxious about their savings. We would like to thank them for their patience.

“We have been working hard to establish a way of compensating retail depositors of Icesave without the need for a paper-based application process. We will be contacting retail depositors to tell them how the transfer process will work and when they can access the system. The automated payment process is expected to be in place in ten days time and the first payments are scheduled to start in the second week of November. We expect to offer compensation to the vast majority of retail depositors in November.”

Icesave’s customers do not need to do anything at this stage. Their savings are safe. The correspondence they receive will tell them everything they need to know about how to access their savings, ISAs or term accounts.

FSCS is working closely with the Newcastle Building Society on the repayment arrangements. The building society provided Icesave’s online banking facility and is playing a key part in the process which uses their existing infrastructure to host the FSCS process.

The FSCS has already stepped in to help more than 2.7m UK consumers as a result of the recent problems at Bradford and Bingley, Heritable and Kaupthing Singer and Friedlander. It is now processing compensation applications from customers of Heritable and Kaupthing Singer and Friedlander whose accounts were not transferred to ING Direct.

Press Enquiries:

1. About FSCS

The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensation scheme for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it. FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA). The service is free to consumers.

2. Authorised firms

The rules under which we operate tell us which types of claims are eligible for compensation, and limit how much compensation we are allowed to pay. They are set by the Financial Services Authority (FSA). Firms need permission from the FSA to carry out a regulated activity, which covers activities such as accepting deposits, insurance business and investment business.

Dealing with an authorised firm gives consumers access to the Financial Ombudsman Service (FOS) and FSCS. Consumers can check that the firm they are dealing with is authorised by contacting the FSA’s Consumer Helpline on 0845 606 1234.

3. Limits of compensation

As the UK’s statutory compensation scheme, FSCS can only pay compensation for financial loss where a firm is unable, or likely to be unable to meet claims. For deposits, the compensation limit is 100% of the first £50,000 and applies to each depositor for the total of their deposits with an organisation, regardless of how many accounts they hold or whether they are a single or joint account holder. In the case of a joint account FSCS will assume that the money in that account is split equally between account holders, unless evidence shows otherwise.


MY EARLIER POST
__________________________________
We've just spoken to the FSCS which promised it'd update the situation this week, and it said a statement is due to go up

jem16

It's on the FSCS website now.

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

TattyBear

cwcw wrote: »

I wrote to David Cameron, amongst others yesterday. His office replied, and is the only non-automated response I've had to date. It also sounded quite positive and I'm very pleased that his office has actually bothered to reply to me. Here it is:



I am writing on behalf of David Cameron to thank you for your e-mail, about the timing of compensation for Icesave customers.

We understand that this is an anxious time for you as you wait to recover your savings. We have been in touch with the Financial Services Compensation Scheme (FSCS) and have been told that a timetable for compensation will be published in the week beginning 27 October 2008. We understand that the FSCS has committed to paying compensation within weeks, rather than months.

I recommend that you keep in touch with the FSCS on 020 7892 7300. If compensation is not paid in the coming weeks, I would also suggest that you contact your local MP for assistance.

Icesave collapsed at a time when we had to rescue the banks to rescue the wider economy. The impact on the Icelandic economy is clear to see and it became unclear whether the Icelandic compensation scheme would honour the claims of UK depositors. The Chancellor decided that it was right to compensate all Icesave savers regardless of their deposit level. These factors have complicated matters for the FSCS. However, savers are entitled to be compensated promptly and I am concerned that constituents are unable to use money which is theirs. This is why Conservatives have called on FSCS compensation in all cases to be paid within one week of a claim being made.

Thank you, once again, for writing.

By strange coincedence, the above reply from Cameron's office is word for word almost EXACTLY the same as the text of the letter I received from Ian Liddell-Grainger, my local MP!

Cut and paste seems to be the order of the day at Conservative HQ.

whiterabbit3

I think the voice that has been missing from this discussion is that of the person who doesn't just have their savings tied up in this fiasco, but who draws a monthly amount on which to live. Unfortunately I have found that EoN et al are not overly sympathetic to the plight of those with no money, even if it is because the Icelanders have stolen it. Not everyone with money caught in this impasse has it there purely to amass savings and has no immediate need to access it.

Former_MSE_Dan

Hi folks

A bit of breaking news

The FSCS says it intends to have a process in place in 10 days time... Here's their press release (with the really vital bit in bold)...


INFORMATION
Compensation on the way for Icesave customers through accelerated FSCS process

The more than 200,000 retail depositors with savings in Icesave UK, the topped up retail deposit business of the UK branch of Landsbanki, will get back their savings through an accelerated process, the Financial Services Compensation Scheme announced today.

The Government has guaranteed 100% of all deposits held by retail depositors of Icesave and has said that people will not lose their tax status for their ISAs. FSCS expects to launch the process in ten days time. Our top priorities are to give Icesave customers some certainty and to move to a speedy payout as quickly as possible.

The move comes two weeks after Icesave was declared in default by the Financial Services Authority (FSA). The FSCS has been working closely with the FSA and HM Treasury to achieve the best approach to repaying retail depositors of Icesave.

Subject to putting the final arrangements in place, FSCS expects to do this through an accelerated electronic process. This is expected to result in quicker payments and less inconvenience for retail depositors.

FSCS is putting in place a system that means retail depositors of the bank should be able to receive their savings through an electronic payment into their linked accounts. This will happen in stages. FSCS will write to retail depositors of the bank to detail how the process will work. FSCS will then contact customers again with instructions on how to complete a short electronic process to finish the transfer. The process will be phased to manage the flow of payments through the system and for security reasons.

In parallel, the authorities are also continuing to explore whether alternative solutions might provide an even better option for payout.
Loretta Minghella, Chief Executive of the FSCS, said: “We recognise that Icesave’s customers have been anxious about their savings. We would like to thank them for their patience.

“We have been working hard to establish a way of compensating retail depositors of Icesave without the need for a paper-based application process. We will be contacting retail depositors to tell them how the transfer process will work and when they can access the system. The automated payment process is expected to be in place in ten days time and the first payments are scheduled to start in the second week of November. We expect to offer compensation to the vast majority of retail depositors in November.”

Icesave’s customers do not need to do anything at this stage. Their savings are safe. The correspondence they receive will tell them everything they need to know about how to access their savings, ISAs or term accounts.

FSCS is working closely with the Newcastle Building Society on the repayment arrangements. The building society provided Icesave’s online banking facility and is playing a key part in the process which uses their existing infrastructure to host the FSCS process.

The FSCS has already stepped in to help more than 2.7m UK consumers as a result of the recent problems at Bradford and Bingley, Heritable and Kaupthing Singer and Friedlander. It is now processing compensation applications from customers of Heritable and Kaupthing Singer and Friedlander whose accounts were not transferred to ING Direct.

Press Enquiries:

1. About FSCS

The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensation scheme for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it. FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA). The service is free to consumers.

2. Authorised firms

The rules under which we operate tell us which types of claims are eligible for compensation, and limit how much compensation we are allowed to pay. They are set by the Financial Services Authority (FSA). Firms need permission from the FSA to carry out a regulated activity, which covers activities such as accepting deposits, insurance business and investment business.

Dealing with an authorised firm gives consumers access to the Financial Ombudsman Service (FOS) and FSCS. Consumers can check that the firm they are dealing with is authorised by contacting the FSA’s Consumer Helpline on 0845 606 1234.

3. Limits of compensation

As the UK’s statutory compensation scheme, FSCS can only pay compensation for financial loss where a firm is unable, or likely to be unable to meet claims. For deposits, the compensation limit is 100% of the first £50,000 and applies to each depositor for the total of their deposits with an organisation, regardless of how many accounts they hold or whether they are a single or joint account holder. In the case of a joint account FSCS will assume that the money in that account is split equally between account holders, unless evidence shows otherwise.