MSE News: Santander savers' FSCS protection could be halved

edited 19 March 2010 at 5:47PM in Savings & Investments
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  • MarkyMarkDMarkyMarkD Forumite
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    Come on, MSE Martin/Guy.

    The starting thread wording is ridiculous.

    The truth is that those who have over £50k in total between Santander and A&L may suffer a reduction in total FSCS protection.

    Not that Santander customers will lose anything at all.

    And the FSCS limit is totally, totally, academic. The government has bailed out all savers for the last 5 years in any failing institution, without limit.

    The Daily Mail's obsession with the £50k limit is bad enough. But MSE should know better and stop scaremongering with misleading headlines.
  • moleratmolerat Forumite
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    Could someone please explain what the High Court's involvement is?
    Why does this have to go to Court ?

    Because we have decided to implement the proposal using the process set out in Part VII of the Financial Service and Markets Act 2000, the Proposal requires the approval of the Court. In considering whether to give its approval, the Court will consider whether the Proposal adversley affects or prejudices customers and others, although we do not believe this would be the case.
    there you are :cool:
  • Why does this have to go to Court ?

    Because we have decided to implement the proposal using the process set out in Part VII of the Financial Service (sic) and Markets Act 2000, the Proposal requires the approval of the Court. In considering whether to give its approval, the Court will consider whether the Proposal adversley (sic) affects or prejudices customers and others, although we do not believe this would be the case.

    Well they would say that, wouldn't they :D
  • Stavros_3Stavros_3 Forumite
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    I'm with Satander (formerly B&B). When I read this headline it implied that my protection level was to be halved to 25k.

    This is a poor thread title MSE, not impressed. Guy you are demoted to to making the tea
    Liquidity is when you look at your investment portfolio and **** your pants
  • I phoned A&L and was told that if I have a joint account in A&L with more than £50K in it then when the merger happens with Santander the total protection on the joint account would be £50K and not £100K. I feel that this must be wrong because there would be nothing to stop me splitting the two accounts and have individual protection of 50K each. I may be wrong but the article is really talking about if you had single accounts both in Santander and A&L with 50K in each then after the merger you would only be entitled to a total of 50K protection Similarly if you had joint accounts in A&L and in Santander then after the merger your 2 accounts would be only entitled to a total of 100K protection because they come under the same institution. Could someone please clarify.
  • dunstonhdunstonh Forumite
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    I phoned A&L and was told that if I have a joint account in A&L with more than £50K in it then when the merger happens with Santander the total protection on the joint account would be £50K and not £100K.

    You have been told wrong. Its £50k per person per banking licence.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Don't the staff at A&L read these forums? :D
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