Icesave FSCS - petition for interest up to date compensation paid

mrkbrrws

Would anyone who agrees it is unfair for certain groups of individuals to receive no interest for months while waiting for compensation from the FSCS please read and sign my petition.

http://petitions.number10.gov.uk/FSCSInterest/

We the undersigned petition the Prime Minister to pay interest to individuals claiming compensation after the collapse of Icesave and other banks from the date of default to the date compensation is paid.

The Financial Services Compensation Scheme currently only pays interest up to the date that a financial institution defaults.

In the case of Icesave this was 7 October 2008 and it is unfair that no interest is earned from this date to whenever compensation is received, for the following reasons:

1.) Some savers received their money back in November and have been able to earn interest on it since then, but others have to complete a paper form and their compensation may be received in February 2009 with no interest for months.

2.) While some savers are not receiving interest from banks such as Icesave, those with savings in other failed banks have simply been transferred to another bank and have continued to receive interest.

ebyard

I appreciate the sentiment, as an ex-Icesaver, but you have a snowball in Haides chance of getting any more money out of FSCS (who in turn got the money from Iceland via a complicated process..).

There is probably no more money in the pot, and with the economy the way it is, be thankful you got anything back at all. If the Tories were in, they were going to say "hard luck". I'm no Labour supporter but Brown and Darling did the right and honourable thing.

isofa

mrkbrrws wrote: »

Would anyone who agrees it is unfair for certain groups of individuals to receive no interest for months while waiting for compensation from the FSCS please read and sign my petition.

Considering everyone may have lost everything in these accounts, if the FSCS/government hadn't stepped in, I don't think you'll get many takers for the petition!

I think the FSCS have done a good job, had my instant access account paid out in full with interest up to the collapse (lost about 2 months interest), and now just waiting for my fixed rate via a postal form (from which I'll lose some interest again). Both balances were well under the original limits, but still considering the passport scheme wasn't worth the paper it was written on, I and thousands of others, should be pleased that we were looked after. What if the Government hadn't stepped in, many people would now be ruined.

A few people will have had problems with the claiming process, but considering the thousands of accounts, this is par for the course. Nothing is perfect. Those people who have had problems will make the most noise, many thousands who have had it all work perfectly won't even have been on-line searching for problems, let alone on MSE.

Sure people lost some interest, but we all could have lost our capital. Perhaps you should consider how lucky you have been, many people could have lost their life savings.

Onawingandaprayer

As it looks as if I'll have to wait about three months for repayment of my Fixed Rate Account - claimed Nov 12th - nothing received , I personally think the paperwork side has been a disaster.

Point 37 from their FAQs was clearly a joke:

37. If I choose to keep my fixed rate savings account until maturity, what will happen?
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]We will process your claim through the manual paper-based process so far as possible within 6 weeks of receipt of a completed application form. Once this process is complete, you will receive payment following the maturity date of the account.

Not a very funny joke, mind.
[/FONT][/FONT]

mrkbrrws

ebyard wrote: »

I appreciate the sentiment, as an ex-Icesaver, but you have a snowball in Haides chance

I'm not asking if you think it's likely, I'm just asking if you think it's fair.

ebyard wrote: »

of getting any more money out of FSCS (who in turn got the money from Iceland via a complicated process..).

The petition is not necessarily asking for the money from the FSCS, it could just come out of Treasury funds.

ebyard wrote: »

There is probably no more money in the pot,

The Government found money in the pot to reduce Income Tax by £120 for all basic rate taxpayers and to reduce VAT. This would cost a fraction of those measures.

ebyard wrote: »

and with the economy the way it is, be thankful you got anything back at all.

Actually, I haven't got anything back yet - I'm still waiting for an application form. I am thankful that the Government committed to compensate all savers.

What I feel is unfair is that because I initiated an ISA transfer out of Icesave in September I suffer a loss of income for over four months but if I hadn't it may have only been just over one month.

There are other circumstances that mean some people are arbitarily losing income waiting for paper applications to be processed.

If you agree that this is unfair, please sign the petition even if you think it is unlikely to change anything.

harz99

No I don't think it is fair to expect compensation for lost interest - we all made a poor investment choice, but unlike those in the stocks and shares markets, we both got our capital back and had the interest up to when Icesave went belly up.

Any further monies would end up coming from all taxpayer's which again I feel would be unfair.

I am losing interest and think it is unfair that savers are being treated so poorly by the banks and building societies, but I don't expect everyone else in the land to make up my losses.

Onawingandaprayer

We got our capital back???

Clearly not all of us.

mrkbrrws

isofa wrote: »

Considering everyone may have lost everything in these accounts, if the FSCS/government hadn't stepped in, I don't think you'll get many takers for the petition!

I'm struggling to understand the logic to this statement.

Yes, of course I'm happy that the Government made sure that (once I get it back) I won't have lost any capital. I'm just saying I would be happier if I wasn't losing interest for over four months.

harz99

Onawingandaprayer wrote: »

We got our capital back???

Clearly not all of us.

Maybe I should have said; we have either already got our capital back or will do so when the FSCS process is completed.

Either way, the monies invested will be repaid.

harz99

mrkbrrws wrote: »

I'm just saying I would be happier if I wasn't losing interest for over four months.

Ah but your not "just saying"; your asking for signatures to a petition which hopes to persuade the government (via taxpayer's) to reimburse you for your lost interest.

masonic

I don't think you can reasonably expect to receive anything extra, unless the FSCS failed in its original obligation to you. It was obliged to pay no compensation on the first £16,300 (leaving you to claim from Iceland) and to pay the remaining compensation within approxamately six months.

Sure, some people have been extremely lucky and received their compensation a lot more quickly than they could expect to have. That doesn't mean you are owed anything for not being among those lucky people. If you look at this leaflet, the FSCS have always stated that "Some claims are completed much faster [than 6 months], however, in other cases delays may occur because of factors outside our control." Long delays should certainly have been anticipated, even without the complications of Iceland refusing to meet its own obligations.