Icesave: what do I do if my nominated account is now closed?

militantconsumer

I've started this thread for a specific question because the other threads are full of posts from very happy people who've managed to transfer their money out....

I have received my 2nd email. But when I log in I find that my "nominated account" is my old (closed) Co-op current account, not my new Alliance & Leicester current account. Obviously I can't change the nominated account now because they are worried about fraud.

I called Co-op and they told me that funds received by them into a closed account will be automatically bounced back.

My question is: will Co-op really bounce funds back to a collapsed bank???!!! And will FSCS/Icesave really accept money that's bounced back to them? Or will it all get stuck in a new frustrating banking limbo?

Obviously I could leave the money in Icesave for another month and wait for the postal cheque reclaiming system to start - but I'd really like to get it out and into another ISA before all the fixed rate deals become unavailable.

Thanks in advance for any help or suggestions!

KingL

From the first email :

We are aware that some customers will not be able to take part in the electronic payment process for a variety of reasons, such as not having a nominated account set up, ..... We have tried to identify these account holders and will begin sending out application forms to them from mid-November 2008 onwards. If you fall into this category, you do not need to take any further action at this time. The non-electronic process will be slower (we aim to complete this process as far as possible within 6 weeks of receipt of a completed application form), but you will receive the same amount of compensation no matter which process you use....



I read that as "no (valid) linked account = paper process". End-of.

will Co-op really bounce funds back to a collapsed bank???!!!

Whoever it is that sends the funds to the Co-op (be it FSCS or Newcastle BS or other) will be a valid banking entity and, yes Co-op will bounce funds back to them.

And will FSCS/Icesave really accept money that's bounced back to them?

. Yes, of course. Many other people will be in a similar situation to you and this will be the indication to FSCS to put you on the 'manual process' list.

Or will it all get stuck in a new frustrating banking limbo

Well, quite. Who knows?

.

militantconsumer

Ok, I found the answer on the FSCS website
http://www.fscs.org.uk/faq/icesave_faqs/

Unfortunately I just have to wait for the manual process

16. I now have a different nominated bank account. Could the existing details be changed?
If you advised Icesave of the change and your instruction was received prior to 7th October 2008, your request will have been processed and you should have received written confirmation of the change of details. When you receive your invitation email, please log on and check the nominated account details are correct. If they are not correct, please do not attempt to process your claim online. You will be contacted in due course to make a claim under the manual process.