Icesave compensation payouts

scorpiostar

This is a warning for people waiting for Icesave compensation payouts from the FSCS. I had a fixed rate Icesave account which matured this month. I received a cheque from the FSCS and when I checked the amount, it was only for the amount of the balance back in 2008 and did not include the interest accrued over the last two years, despite having received a letter confirming the correct amount back in May. I phoned them today and was told that it was a mistake and they've had several calls from people with the same complaint. They're going to put it right but if I hadn't noticed, I would have been underpaid to the tune of several hundred pounds. If you receive a compensation cheque from the FSCS, don't assume that it's right.

strawberrylane

Thanks for the warning. My wife's compensation is due next month. How are they going to correct the error? Are they re-issuing a new cheque for the correct amount or are they sending a second cheque for just the missing interest?

scorpiostar

They told me to cash the cheque and they will send a second cheque for the interest. However, I'm going to wait until the second cheque actually arrives before I cash the first. I don't have much confidence in them. It was a pure fluke that I noticed the error at all. I was actually checking the maturity date on another account when I realised there was a problem.
Hope your payment goes through without a hitch.

strawberrylane

Thanks, I think you are wise not to cash the 1st cheque. Please let us know how it goes and when you get the 2nd cheque.