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Very worrying stop press news re Anglo Irish

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  • Mr._H_2
    Mr._H_2 Posts: 508 Forumite
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    masonic wrote: »
    On the subject of people not using the internet, remember that those people would also have to not read a newspaper or watch the TV news to avoid hearing about the changes. It was a very big national story when these changes were introduced last September.

    Well, I use the web (including this site) watch TV and read newspapers, but I only realised very recently that Anglo Irish isn't covered by the FSCS any more. I therefore don't agree that it was a "very big national story"; certainly it would appear that it was easy to miss.
  • masonic
    masonic Posts: 27,381 Forumite
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    Mr._H wrote: »
    Well, I use the web (including this site) watch TV and read newspapers, but I only realised very recently that Anglo Irish isn't covered by the FSCS any more. I therefore don't agree that it was a "very big national story"; certainly it would appear that it was easy to miss.
    Did you know that the FSCS at no time covered the first €20,000 of compensation, which was the sole responsibility of the Irish compensation scheme? If you didn't know that, then you probably wouldn't have paid attention to reports about the changes to the Irish compensation scheme (even though both Anglo and the Post Office were mentioned in articles I read at the time).
  • Mr._H_2
    Mr._H_2 Posts: 508 Forumite
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    masonic wrote: »
    Did you know that the FSCS at no time covered the first €20,000 of compensation

    No, I didn't, because when I checked the Anglo Irish website, it made absolutely no mention of any passport scheme.

    When foreign banks partake of the FSCS program, they have the option of using the "passport scheme", where a portion of the cover is provided by the home country. Presumably if they do this, the fees they have to pay to the FSCS are lower. However, they can choose to be full members of the FSCS and have the savings covered entirely by them.

    Since the Anglo Irish website made no mention of a passport scheme, I assumed that they were fully covered by the FSCS.

    I'd be interested to see your evidence that they were using the passport scheme before they withdrew entirely.
  • masonic
    masonic Posts: 27,381 Forumite
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    Mr._H wrote: »
    I'd be interested to see your evidence that they were using the passport scheme before they withdrew entirely.
    I posted a link to a news article detailing Anglo's compensation situation earlier in this thread (here).

    Summary of situation on 28th March 2008:
    So in the case of Anglo-Irish Bank, you would receive £14,000 under the Irish compensation scheme and seek the remainder from the FSCS.
    There's a big discussion on the topic here. See the answer to the third question, which states:
    The FSCS points out that Anglo Irish were only ever partially covered by its scheme, as "top-up" members. Any failure would in the first instance be subject to the Irish system of deposit protection, with any "top-up" provided by the FSCS to its compensation limit.
    ...there are plenty of other examples out there if you do a bit of searching.
  • Mr._H_2
    Mr._H_2 Posts: 508 Forumite
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    masonic wrote: »
    I posted a link to a news article detailing Anglo's compensation situation earlier in this thread (here).

    Summary of situation on 28th March 2008:
    There's a big discussion on the topic here. See the answer to the third question, which states:
    ...there are plenty of other examples out there if you do a bit of searching.

    Thank you.

    I find it alarming that Anglo Irish didn't make it clear on their own website that they were top-up members as opposed to full members. Icesave, for example, made it very clear from day one that they were using the passport scheme.

    When I looked on Anglo's site, it just said it was covered by the FSCS. No mention whatsoever of "passports" or "top ups". Seems deliberately misleading to me.
  • masonic
    masonic Posts: 27,381 Forumite
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    Mr._H wrote: »
    When I looked on Anglo's site, it just said it was covered by the FSCS. No mention whatsoever of "passports" or "top ups". Seems deliberately misleading to me.
    What do the T&Cs of your account say? Mine state...
    15.1 The Bank is a participant of both the Financial Services Compensation Scheme (FSCS) and the Irish Deposit Protection Scheme...

    ...although I applied after September 2008.
  • Mr._H_2
    Mr._H_2 Posts: 508 Forumite
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    masonic wrote: »
    What do the T&Cs of your account say? Mine state...

    I don't have an account with them. My mother does though.

    Saying the bank is a member of two deposit protection schemes does not logically imply that a passport scheme is in effect. One would expect the Anglo Irish bank to be members of the Irish scheme in order to protect their Irish customers.
  • masonic
    masonic Posts: 27,381 Forumite
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    Mr._H wrote: »
    Saying the bank is a member of two deposit protection schemes does not logically imply that a passport scheme is in effect. One would expect the Anglo Irish bank to be members of the Irish scheme in order to protect their Irish customers.
    I agree that the statement isn't sufficient to give a clear picture of what the compensation arrangements are. These are account specific T&Cs, though, and this account is not (AFAK) available to non-UK residents, so if a foreign compensation scheme was mentioned in previous literature, then it might at least lead one to become suspicious and enquire further. Of course, if the Irish scheme was not mentioned previously, then that would clearly be misleading.
  • soulsaver
    soulsaver Posts: 6,644 Forumite
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    cepheus wrote: »
    Would you feel the same if the obligations to underwrite your life savings were changed from the UK government to Rumania, Bulgaria or one of the Baltic states (all EU states) without being explicitly told by letter or Email? Bear in mind many people still don't use the internet.

    Would you have put your 'life savings' in one of those banks without understanding what the depositor protection would be?
  • melbury
    melbury Posts: 13,251 Forumite
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    Well it seems from another post on here about Anglo Irish Bank that they are quite willing to let investors withdraw their funds if they want to. This of course poses the question, what to do with the funds then??

    The interest rates on offer now are so pathetic they just don't warrant consideration really. So I have decided to live dangerously and leave the money invested with Anglo Irish and then hopefully cash in my two year fixed rate bond when it matures in November and think what a load of idiots all those people were who pulled their savings out early.
    Stopped smoking 27/12/2007, but could start again at any time :eek:

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