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

meanmachine_2

1echidna wrote: »

I have to say that I would trust neither. I just wonder if the FSCS have left themselves wriggle room and can say that negotiations with the Icelandic Authorities have not progressed as quickly as they counted on. The reaction here of course would 'out' a few more people in need of anger management classes.

For once I agree with you.

But as I say, I hope Scooby really *does* have a clue in this regard.

Happily they've put a number of the days we have to wait, but as Martin says, expect a big negative reaction if that self-imposed deadline starts to slip.

Suzkin

I spoke to Icesave, Kaupthing AND ING a few days ago.

ICESAVE says that if you have FIXED TERM PRODUCT such as their 6 month bond, then this will operate as usual i.e. you will get the capital and all the interest at the fixed rate on maturity. For me, this means Feb 2009.

ING says whilst they have taken over Kaupthing, people still need to operate their accounts via Kaupthing (via their website etc.). Once accounts have been transferred entirely to ING, then they will write to account holders.

KAUPTHING says they are operating as per usual, and await to hear from ING in due course.

nilrem_2

Suzkin wrote: »

I spoke to Icesave, Kaupthing AND ING a few days ago.

ICESAVE says that if you have FIXED TERM PRODUCT such as their 6 month bond, then this will operate as usual i.e. you will get the capital and all the interest at the fixed rate on maturity. For me, this means Feb 2009.

No disrespect Suzkin but I would not necessarily take too much notice of what the people at Icesave say, they are just doing the job for the FSCS who are in charge and will make the final decision as to how they handle Fixed rate bonds. I don't think that even the FSCS have announced what they will do with Fixed rate savings, most of what we hear is gossip and conjecture. (IMHO)

Optimist

On Money box on BBC this lunchtime .

People will receive a email in November giving details of how to withdraw your moneys to the linked account.

People with term bonds will have the option to withdraw straight away or leave for the full term

On ISAs he didn't seem too sure on the process yet but said that the tax free status would still be guaranteed.

All moneys should be returned by Christmas irrespective of talks with the Icelandic authorities

nilrem_2

Optimist wrote: »

On Money box on BBC this lunchtime .

People with term bonds will have the option to withdraw straight away or leave for the full term

Given that this happens please vote in my poll here
http://forums.moneysavingexpert.com/showthread.html?t=1243111

KingL

Exact text from the Money Box broadcast 25 Oct 08 on the subject of Fixed rate bonds.

Money Box presenter Paul Lewis interviewing Money Box reporter, Bob Howard

Paul : But Bob, there is still some uncertainty regarding Icesave customers with fixed rate bonds...

Bob: Yes, Paul, the FSCS says lots of customers are saying they want to cash these in and it says it is working out a way for this to happen.
Those who want to keep their bonds as they are, we understand they will get interest up to the date they mature, but we don't know yet what happensto the interest for anybody who decides to cash their bond in early.

23:30 http://www.bbc.co.uk/iplayer/episode/b00f25vz/Money_Box_25102008/

Liz_the_Whizz

Just listened to today's Money Box programme on BBC iPlayer - the interview with the FSCS guy is around 21 minutes into it.

So we should all get an e-mail in 10 days time (Bonfire Night?) inviting us to go on-line to use an FSCS process to transfer funds into our linked accounts. "Vast majority" will get money by BACS within 2-3 days of completing the process, so by end of November most retail customers will be sorted.

Fixed rate bonds still under discussion for those who want to cash in early, unclear whether any interest will be paid. If you keep them to maturity, then FSCS guarantee to repay with interest due at that date.

Feel a lot more positive again now, even better when that money hits my account;) .

bsimmons

This stuff called money is very emotive!! Perhaps we should rename this thread Handbags At Dawn.
Perhaps the extra hours sleep tonight will do the trick.
I'm in up to my neck like several others. Whilst I don't like to count my chickens, I don't think anymore could have been done to reassure us that we will get our money back. If it comes before Christmas I will treat that as a bonus and feel extremely lucky not to have lost it like it appears others (Isle of Man, Guernsey) might.

hra_2

ms4028 wrote: »

Am I one of the few people who believed the assurances of the Head of "Icesave " on "Moneybox" (Radio 4 programme) days before the bank defaulted ? or the information on it's own website that kept telling us how safe our money was ?
Does anyone know if there is a legal angle on this - does this count as fraud ?

I'm glad this point has been raised and am amazed there hasn't been more commentary in the press. How a CEO of a savings institution can make public statements to reassure savers of the safety of their money, only for the bank to go bust 3 days later, beggars belief. Even as he spoke, transactions people were making would not be honoured, at least, BACS ones. Whether he was lying outright, or misinformed, or inexplicably "overtaken by events" is anyone's guess but surely this should not pass without an inquiry of some sort, or even legal action (though on the legal point as FSCS compensation is being paid so fully and quickly, our consequential losses are not as great as they could have been!).

What kind of message does this send out for the next bank which makes public statements? Hardly a recipe to instil confidence in the system.

I, too, was taken in by that Moneybox interview but I cannot say for sure whether I would have made my CHAPS transfer in time if I hadn't heard it. (It went out early on Tuesday - too late). Certainly the comments had the effect that I did not follow the news coverage so closely over the next day or so.

Here's the link for anyone who missed it
http://news.bbc.co.uk/1/hi/programmes/moneybox/7652519.stm

soulsaver

I'm not really one to speak up on behalf of the financial sector but if I was a prudent conservative UK financial entity who loses out to competition from the likes of Icesave, KE and to a lesser extent Heritable, I'd be hopping mad that I have to stump up to cover the compensation when they tip over.
One of the Dutch banks has refused to contribute to the compensation pot as the CEO had been complaining that Icesave (Holland) had been allowed to take deposits at 'unsustainable interest rates' ever since their arrival on Dutch soil in May - I guess when deposits started to dry up from UK depositors. There is loads more to the Icesave story involving the owners and alleged links to Russian Mafia. But let's get our money back first. I for one am encouraged by the FSCS announcement. And as one of the 'daft' depositors who was in all 3 of the Icelandic banks, and also in ING this seems better controlled than trying to get my KE edge money out since it was handed to ING 10 days ago.... I know: "...we haven't got it yet..." but I am prepared to cut the gov some slack in the circumstances. :thumb: