Are the FSCS Icesave Arrangements Fair?

orangecat

Am I missing a point here, talk

monkeydog

nilrem wrote: »

Yes but you have had your 2nd email and money!:o

And?

There is a que, some are at the front, some in the middle, and some are at the back.

Be glad there is no passport scheme to deal with, and the fact that you have to do absolutely nothing to get your money back.

miserable_ol_so_n_so

grahawk wrote: »

I would have happily volunteered to be last in the queue as long as I get the money, although I'm saying that having received the second email yesterday. It has to be said that the FSCS have shown a high level of competence in this process - much more I think than anyone predicted or expected.

I am sure that FSCS is reputable, competent and is doing a difficult job where security of funds transfer is paramount. What is wrong is whilst the FSCS does a thorough job, which of necessity takes time, we, the depositors can lose substantial ineterest payments. To some this loss is of no consequence. To others it is. I think the long wait would be bearable if like with Kaupthing/ING affair, the funds were to receive interest until they were returned. If that were the case, FSCS would have every incentive to do a good job in as short a time as possible. As it is, they have no incentive whatsoever to speed things up.

Anyone know why KE?ING customers got full interest and we havent?

How can we progress this?

I for one would not mind if interest was forthcoming, though the loss of access to funds, at this specific point in time is disatrous in that a lot of good deals have gone!

isofa

I've not received my second e-mail, but I'm happy to wait, I think the compensation is fair and very transparent. If I don't receive the second email by 4th Dec, then I'll contact FSCS.

A few months ago those with 50K or less may have lost quite a bit under the "passport" scheme and those with over 50K may have lost everything above.

As it stands everyone gets their money back, only with a small loss of interest from 7-10-10 onwards.

Those with fixed rate accounts can wait until maturity and the FSCS will honour the original rate, with a 6 week delay in the end payout. I think this is very fair indeed.

How can anyone truly "complain"? I understand people who live off the interest are losing out, but look you may have lost your entire savings.

Be patient. Internet forums make it worse, as people read that others have received the e-mails etc, and then start to panic as they haven't. If it wasn't for these forums, you'd just be waiting patiently for the second e-mail.

Several people voted on another thread about receiving the second e-mail, earlier in the week - voting that they had received their 2nd e-mail on Thurs and Friday this week, but actually casting their vote many days earlier! Comedy!

oldagetraveller

miserable_ol_so_n_so wrote: »

Anyone know why KE?ING customers got full interest and we havent?

Probably because the deposits were transferred to another bank, i.e. ING and not frozen because, with Icesave, the bank went "bust"and defaulted on it's obligations?

MrsMillar

nilrem wrote: »

I think we can be confident that we will get our cash back eventually but I as I wrote in another thread I do not think it is fair that some people may have to wait possibly until 4th Dec to get their cash back, until Monday we were all treated equally now some are at a disadvantage which could cost them quite a lot of interest loss.

I favoured an electronic transfer but now I am not so sure TBH, had they used a paper based system at least we would have a fair chance of not being last whilst people who were tardy returning forms would wait longer?

But we mustn't complain about losing interest, we have to be grateful!:eek:

I am a bit confused as you appear to think that you are at a disadvantage due to the fact that others are receiving their money earlier. I can understand how you are at a disadvantage compared to those people, but the fact that others are receiving their money earlier doesn't in itself put you at a further disadvantage. From what you are saying it seems that you would be happy to wait until 4 Dec for your money - as long as everyone else had to wait that long also. Why? What difference does it make to you personally?

For the record, I got my 2nd email yesterday. However, I would have much preferred it if my sister had got hers as she really needs her money. Further I am very grateful for the return of the first 16K, which should have come from Iceland, and even for the interest to 7 Oct, which I initially assumed was lost also.

grastgirl

I am in a similar situation to Mrs Millar, where I would have preferred someone else, (specifically my OH, but also including any icesaver relying on the interest for their living expenses) to get their money back before me (I have literally just received the 2nd email).

All standard systems such as alphabetical order, reverse alphabetical order, account opening order, value of deposit etc would be inherently unfair, although they might bring a bit more certainty to the system. The only other system I could see them using that might actually help people is if they had asked for volunteers to go to the back of the queue so people who professed to need their money asap could go first, but I believe this would have added more time to the process for everyone and some people would no doubt have abused the system so this would also be unfair.

I'm assuming the order they are using is completely random and therefore is as fair as it can be because it is then down to luck. Hopefully they may find that because the process is relatively quick and simple they may find that they can send out more emails than they predicted each day and therefore everyone will get their money back that much quicker.

miserable_ol_so_n_so

oldagetraveller wrote: »

Probably because the deposits were transferred to another bank, i.e. ING and not frozen because, with Icesave, the bank went "bust"and defaulted on it's obligations?

So that begs the question, what is happening to the deposits that was in icesave accounts.....who has it in their coffers and are they profiting from holding them......and more to the point, what is their best interest....is it (a) ...to release this as quickly as possible or (b)....to drag it out as long as possible?

grastgirl

I suspect Icesave have effectively swallowed the original money in various investments and so on, so the money is coming from the treasury via FSCS, so I'm guessing the only people who might be benefitting are the people/organisations who are lending the treasury money.

ajaxgeezer

miserable_ol_so_n_so wrote: »

So that begs the question, what is happening to the deposits that was in icesave accounts.....who has it in their coffers and are they profiting from holding them......and more to the point, what is their best interest....is it (a) ...to release this as quickly as possible or (b)....to drag it out as long as possible?

I believe the deposits in the Icesave accounts doesn't actually 'exist' anymore, it's been swallowed up by the nation of Iceland's demise.

The money paid out to Icesavers is effectively 'new' British money.

I think it's fair to say that they are hardly 'dragging this out. Six months looked like a minimum timescale, some people are paid out in five weeks, and for the last it will be eight weeks. Dragging it out??? No way, Pedro.