Savings Protection - FSCS

Pops_Here

I have found a clause in my HSBC Information Sheet that I haven't noticed before.
It says under the heading Reimbursement:-
"Where the FSCS cannot make the repayable amount within seven working days, it will, from 1 June 2016 until 31 December 2023, ensure that you have access to an appropriate amount of your covered deposits to cover the cost of living (in the case of a depositor which is an individual)...................within 5 working days of a request. Again, there are specific exceptions to this obligation."
Does that mean that they are only obliged to give me a tenner or so per week, (whatever they assess that my cost of living to be), instead of paying back the full £75,000.00 compensation.
I couldn't find the answer in Martin's Advice.
Can anyone clarify or confirm.
Thanks
PS
Sounds like what happened in Greece. It's hard to imagine UK being the same.

pvt

Pops_Here wrote: »

Sounds like what happened in Greece.

What happened in Greece is the government bankrupted the banks - probably a better analogy would be Iceland or Ireland where the banks bankrupted the country.

Either way - I think your money will be safe if it's covered by the FSCS.

Super_Whiskey

Judging by that phrasing, you'd have to ask for it each time you wanted some.

eskbanker

I think the important thing here is the context - immediately before the quoted text is

It will repay your eligible deposits (up to £75,000) within 20 working days until 31 December 2018; within 15 working days from 1 January 2019 until 31 December 2020; within 10 working days from 1 January 2021 to 31 December 2023; and within seven working days from 1 January 2024 onwards, save where specific exceptions apply.

My interpretation of the bit OP quoted is that FSCS aims to pay within seven days but isn't committing to this until 2023, but in the mean time it'll make some interim emergency payments within seven days (presumably in cases of hardship) and, I assume, the rest of the £75K in the 10-20 day timeframe quoted.

The document is at http://www.hsbc.co.uk/1/PA_esf-ca-app-content/content/uk/images/popups/fscs/Financial_Services_Compensation_Scheme_Information_Sheet.pdf if anyone else wishes to go through it....

Pops_Here

Thanks to all for comments.
ESK has picked up on and as are pretty much the same as my interpretation. Words that I do not like i.e. "aims" to pay; "isn't committing": and "interim": "emergency" payments all a bit wishy washy to apply to a persons life savings.
I appreciate that these are Protections by FSCS in case the bank fails but it still bothers me that suddenly these (new?) clauses have been added.
I wonder how may others are aware of this.

pmduk

You could also look at it positively in that they are now putting a specific time-frame where none previously existed. It's a document covering a myriad of possible scenarios, eg a financial institution going under with poor/inadequate records etc etc. I wouldn't be worrying too much

jellie

Pops_Here wrote: »

Thanks to all for comments.
ESK has picked up on and as are pretty much the same as my interpretation. Words that I do not like i.e. "aims" to pay; "isn't committing": and "interim": "emergency" payments all a bit wishy washy to apply to a persons life savings.
I appreciate that these are Protections by FSCS in case the bank fails but it still bothers me that suddenly these (new?) clauses have been added.
I wonder how may others are aware of this.

It would bother me even more if the protection didn't exist at all.

eskbanker

Pops_Here wrote: »

Thanks to all for comments.
ESK has picked up on and as are pretty much the same as my interpretation. Words that I do not like i.e. "aims" to pay; "isn't committing": and "interim": "emergency" payments all a bit wishy washy to apply to a persons life savings.
I appreciate that these are Protections by FSCS in case the bank fails but it still bothers me that suddenly these (new?) clauses have been added.
I wonder how may others are aware of this.

I wasn't echoing your concerns, I was trying to alleviate them as I don't believe you have anything to worry about!

My reading of the HSBC document is that they're effectively saying "you will get everything back (up to £75K) and FSCS will aim to do so sooner than promised" but ultimately it wouldn't be anything to do with HSBC anyway (by definition) so you may find more comfort in the simpler wording FSCS use on their own site:

The FSCS automatically refunds savings up to £75,000 within 7 days.