Icesave Deposit Return Process

[jimjones]

I've just go this email. However, for post people it will be marked as spam (clever stuff FSCS!) so I'm posting it here...

It looks like they are going to use the current website to send the funds out... but they are going to invite people in shifts so they don't crash the server..

Dear Icesave account holder

Icesave accounts with the London branch of Landsbanki Islands hf

This email has been sent to you because records available to us indicate that you hold an account with Icesave. If you do not hold such an account, please contact us by email at enquiries@fscs.org.uk

The Financial Services Compensation Scheme (FSCS) is pleased to confirm the arrangements by which account holders with Icesave will be paid compensation. This will be done through a streamlined electronic process using the bank account that was nominated by you for the purpose of receiving funds from your Icesave account.

Icesave was operated by the UK branch of Landsbanki Islands hf, an Icelandic bank, which stopped doing business on 7 October 2008 and, for the purpose of claims to the FSCS, was declared to be in default on 8 October 2008. Depositors with Icesave are protected for the first part of their loss by the Icelandic Depositors’ and Investors’ Guarantee Fund (DIGF) and for the next part of their loss (up to £50,000) by the FSCS. On 8 October 2008, the Chancellor of the Exchequer confirmed that all depositors with Icesave would be paid their deposits in full, including what they are entitled to from the DIGF and the FSCS and any amounts above the maximum compensation payable by the FSCS.

This communication sets out the basis on which compensation will be paid to you. The full payment will be arranged by the FSCS, although HM Treasury (HMT) will in the first instance fund amounts to which depositors are entitled from the DIGF and, if applicable, amounts above the current FSCS limit of £50,000. Depositors will be paid without needing to submit a separate application either to HMT or the DIGF.

We will be using the existing Icesave website to pay compensation. You may notice that the website looks a bit different. This is because we have removed some of the images on the website to improve its performance during the electronic payment process. The website will be unavailable this week whilst we develop it to pay compensation. Please also be aware that the log on process will be the same as usual and although you will be asked to confirm your nominated account details you will not be asked to provide these details.

As noted above, compensation will be paid into your nominated account (that is the linked account you nominated for your account with Icesave). Although instructions received via the Icesave website on or before 7 October 2008 to change the details of that nominated account will be processed, no further changes will be possible if you wish to receive payment in this way. This is for your security.

We are aware that some customers will not be able to take part in the electronic payment process for a variety of reasons, such as not having a nominated account set up, or where notification has already been given to Icesave that the account holder is deceased. We have tried to identify these account holders and will begin sending out application forms to them from mid-November 2008 onwards. If you fall into this category, you do not need to take any further action at this time. The non-electronic process will be slower (we aim to complete this process as far as possible within 6 weeks of receipt of a completed application form), but you will receive the same amount of compensation no matter which process you use (unless you hold a fixed rate savings account and opt to await payment until the end of the term).

The Icesave systems were not designed to pay all deposits at once. The electronic payment process will be phased to manage the demands on the systems and in the interests of security. Over the next three to four weeks, depositors will be sent a further email inviting them to initiate the payment process. These emails will be phased and sent in batches. Once you have received this invitation email, please log in and follow the instructions on the Icesave website as soon as possible after receiving your invitation email. If you do not receive this second email by 4 December, please contact Icesave’s Customer Services Helpline on 0845 605 8050.

This electronic payment process will operate on the following basis:

You will need to log on and access your account as usual. The same security measures will apply, including your User ID, unique password and memorable information. You will be guided through a process where you will be asked to confirm the balance of your Icesave account, and then make your application for compensation. This process will take a short while to complete, and you should be paid your compensation within five working days of completing the application.

For instant access account holders, you will be able to be paid into your selected nominated account. You will be paid the principal sum and interest accrued up to and including 7 October 2008.

For ISA holders, the same process will apply as for instant access account holders. An ISA certificate will follow by post to allow you to reinvest that sum in an ISA with another provider. The money you held in your ISA will not lose its tax-free status if you reinvest by 5 April 2009. You should receive your ISA certificate within 2 weeks of claiming compensation using the electronic process and you will have to give this certificate to your new ISA provider when you open your ISA with them. You should ask for an ISA transfer form from your new ISA provider.

For fixed rate savings account holders, Icesave offered a range of accounts which are not repayable in full before their maturity (in some cases for up to three years). If you wish, you will be able to use the same electronic payment process to be paid the principal sum plus interest on that sum up to and including 7 October 2008. In other words, you do not have to wait until the end of the fixed term to have your money back. As above, payment will be made to your selected nominated account. On the other hand, if you prefer to wait until the end of the fixed term, and receive interest which would have been due at maturity, the electronic process option is not available to you. However, you should still log on to the website and tick the appropriate box to confirm that this is your wish. At that time, we will be notified that you wish to wait until the end of the fixed term and we will then send you an application form to complete and return to the FSCS. As described above, this process will be slower, although we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form, with payment following the maturity date of the account. You should also be aware that if you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity.

If the account you hold with Icesave is a joint account, the invitation email will be sent to the first named account holder, in accordance with the account terms and conditions. This will enable your joint savings to be paid to the first named account holder. As described above, electronic payment will be made to your selected nominated account. If you do not wish payment to be made in accordance with the account terms and conditions, you will need to inform the FSCS and we will send you a paper-based application form to complete.

When you access the Icesave website to proceed with the payment process, you will be asked to confirm your identity and the details of your selected nominated account. In addition, before the payment can be made, you will be asked to confirm that you accept the payment in satisfaction of your claim for compensation against the FSCS, and to confirm the transfer of your claims against the DIGF, Landsbanki Islands hf or any other party in connection with your Icesave account to the FSCS. This will enable the FSCS to seek to recover the cost of paying compensation to you from the DIGF, Landsbanki Islands hf or any other relevant party.

We hope that this communication has explained what to expect. Please now wait for the next email which will invite you to seek payment of compensation. You do not need to do anything more until you receive your next email.

We believe this electronic payment process best meets the needs of the vast majority of Icesave account holders by offering a relatively quick payment mechanism and avoiding the inconvenience of completing paper application forms and awaiting payment by cheque.

If you have any questions, please contact FSCS’s Customer Helpline on 0845 7300 131 (Icesave enquiries only). If you have any queries regarding the online operation of your Icesave account, please contact Icesave’s Customer Services Helpline on 0845 605 6050.

Yours faithfully

FSCS

This e-mail and the information it contains may be privileged and/or confidential. It is for the intended addressee(s) only. The unauthorised

use, disclosure or copying of this e-mail, or any information it contains, is prohibited and could, in certain circumstances, be a criminal offence. If you are not an intended recipient, please notify us immediately.

The Financial Services Compensation Scheme Limited

7th Floor

Lloyds Chambers

1 Portsoken Street

London E1 8BN

Registered in England & Wales No. 3943048

Switchboard: 020 7892 7300

[sleepless]

I've just go this email. However, for post people it will be marked as spam (clever stuff FSCS!) so I'm posting it here...

It looks like they are going to use the current website to send the funds out... but they are going to invite people in shifts so they don't crash the server..

The Icesave website will be unavailable this week whilst it is developed to make compensation payments.

[Bloo Loo]

Ithought icesave had savings frozen?

[jimjones]

The Icesave website will be unavailable this week whilst it is developed to make compensation payments.

yes - it's been a long day... I could of just said that.. as a developer, the idea it's being "redeveloped" made me smile..

Anyway, they article goes on to say, that even when it comes back on, people will be invited in batches to come and get the compensation.

[sleepless]

I've just go this email. However, for post people it will be marked as spam (clever stuff FSCS!) so I'm posting it here...

It looks like they are going to use the current website to send the funds out... but they are going to invite people in shifts so they don't crash the server..

If you have a fixed term, you can wait to maturity and get capital + (full?) interest. OR you can take the capital out when offered and lose the interest from October 7th.

Is this the right interpretation ? What would be best, safest?

Any views

[sleepless]

yes - it's been a long day... I could of just said that.. as a developer, the idea it's being "redeveloped" made me smile..

Anyway, they article goes on to say, that even when it comes back on, people will be invited in batches to come and get the compensation.

The 'redevelopment' could be interesting. I assume its Newcastle BS, or at least project managed bt them.

[cs02rm0]

Sounds like they're phasing the emails which tell you you're able to withdraw your money over the next month. The ISA will be able to be transferred to another ISA provider if you get a transfer form from them - I was hoping I'd be able to put the money in my NS and I ISA after this mess but it sounds like that's not an option.

[Bebe]

For some stupid reason I left a couple of hundred quid in there when I withdrew my savings - oh yes, because the terms said you'd lose the interest if you withdrew the whole lot. I'd better find out how to reclaim it.

I take it we haven't a hope in hellski of getting our interest?

[Spoony]

I've not got such an email from them. I do only have £4.20 in the account thankfully. Still its money and I'd like it back.

[jimjones]

For some stupid reason I left a couple of hundred quid in there when I withdrew my savings - oh yes, because the terms said you'd lose the interest if you withdrew the whole lot. I'd better find out how to reclaim it.

I take it we haven't a hope in hellski of getting our interest?

It implies the interest on fixed term bonds will also be available:

If you wish, you will be able to use the same electronic payment process to be paid the principal sum plus interest on that sum up to and including 7 October 2008. In other words, you do not have to wait until the end of the fixed term to have your money back.

My interpretation of that would be that they are only going to pay interest up to the 7th October, so your account wouldn't earn any more interest even if you leave it for the full term, but they will allow you to keep you money there - just no interest after October... If I'm reading it right..

[BarnetBear]

I read it that if you have a fixed term bond, you may keep the money in the bond until it matures, and then receive all the interest due at maturity.

However, taking that route, rather than the exit now option, you cannot use the FSCS electronic transfer, you would have to complete a form and wait for around 6 weeks.

[Ash4781]

There was an article I read yesterday that said people were to get their money back before Christmas so they could 'spend' it in the economy. I think a large prop' of the cash will just go into NS&I but that's fine because gov' can just re-lend it to the banks.

[bomberbrown]

Speaking as someone who has been burnt by all this sorry mess, anybody that doesn't get their money out NOW and is considering hanging around for bonds to mature with or without interest, is quite frankly an idiot. I don't say that lightly.

This mess is unprecedented. get your cash out now while you can.

Edited November 5, 2008 by bomberbrown

[Joey122]

Speaking as someone who has been burnt by all this sorry mess, anybody that doesn't get their money out NOW and is considering hanging around for bonds to mature with or without interest, is quite frankly an idiot. I don't say that lightly.

This mess is unprecedented. get your cash out now while you can.

Why - This is surely the best place to leave your cash as it has been FULLY guaranteed by the UK government.

Leaving your funds there might not be a bad idea at all

[AteMoose]

Ahar, got my email

It has taken a month to decide what to do and send an email.

It will take a week to re-develop the website (remove a couple of pictures, Add a Phased login control , add a validate your linked account page)

I'm amazed, a government organisation actually getting something sorted in under 6 months! (although a private company would have probably got it sorted within 2 days)

Edited November 5, 2008 by moosetea

[sympatex]

I'm a little confused about the ISA transfer side of it. I got the impression from the email you will be asked to transfer your ISAmonies out into your linked account where upon a certificate will be sent to you for the full amount allowing you to deposit the full amount in a new ISA with a cheque or another form of transfer from the account your ISA money is now in.

[bomberbrown]

I've just go this email. However, for post people it will be marked as spam (clever stuff FSCS!) so I'm posting it here...

It looks like they are going to use the current website to send the funds out... but they are going to invite people in shifts so they don't crash the server..

I'd like to say either way, but I was so paranoid about not getting this email, I unusually took the steps to add *@fscs.org.uk to my list of safe senders on Monday.

[bomberbrown]

Why - This is surely the best place to leave your cash as it has been FULLY guaranteed by the UK government.

Leaving your funds there might not be a bad idea at all

Because, no matter what the government say now, your money is still stuck in Iceland/the ether/Gordon Browns back pocket and if for some reason they renege on this guarantee ayear down the line. Who's bank are you going to stand outside demanding your money back.

This whole affair has really made me think about internet banks* and their security, especially the foreign ones.

*Although, I'm still tempted by the Egg Easy Saver.

Edited November 5, 2008 by bomberbrown

[Ash4781]

http://news.bbc.co.uk/1/hi/uk/7712916.stm

The government is to lend £800m to the Financial Services Compensation Scheme to help depositors with savings in failed Icelandic bank Icesave.

[Icingonthecake]

Because, no matter what the government say now, your money is still stuck in Iceland/the ether/Gordon Browns back pocket and if for some reason they renege on this guarantee ayear down the line. Who's bank are you going to stand outside demanding your money back.

This whole affair has really made me think about internet banks* and their security, especially the foreign ones.

Mmm, thats sort of my worry, on the one hand grab the money and run, on the other, where the hell is safe right now?,

[jonb]

If you have a fixed term, you can wait to maturity and get capital + (full?) interest. OR you can take the capital out when offered and lose the interest from October 7th.

Is this the right interpretation ? What would be best, safest?

Any views

You have a UK government guaranteed deposit at Icelandic bank interest rates. Keep it until maturity unless you need the money for some reason.

[FirstTimeBonkers]

Has anybody else not received any email from the fscs yet? Just wondering whether I should start getting worried...

[giveusthefacts]

I contacted FSCS today for 2 reasons

(1)- I had not received my email yet

(2)- I am dealing with my mother's estate and so cannot withdraw funds to a linked account

There are so many problems with this FSCS/Icesave helpline.

The staff manning the phones are temps who have been recruited "on behalf of the FSCS" and so their knowledge is limited.

I was told that for a deceased estate, you have to ring the FSCS for an application form to withdraw the funds. Then it cold take AT LEAST 6 weeks.

They also told me that there is no final decision of how they will pay funds to a deceased estate. WHAT!!!! THIS HAS BEEN GOING ON FOR A MONTH NOW

They also told me that Icesave was in Administration as of yesterday

I emailed Loretta Minghella (CEO FSCS) 27th October - No reply

I emailed her again today.

If I do not get a reply, I am going to the FSCS office and demand to speak to her or her flunkies to get an answer.

IT'S BLOODY DISGUSTING :angry:

[*ghost town*]

well, since I can't see any threads about it yet, perhaps I'm the first person on HPC to have received the second FSCS email asking me to log on and retrieve my stash from ICESAVE.

I went through the process earlier, completely hassle-free I'm pleased to say, basically you just go to each account, tick a box saying yes I agree these are my totals, confirm which bank account you want the cash sent to, and yes I'm sure I want to proceed, and away you go. Thats all there is to it, site then says you will receive your money within 5 working days.

ISA customers will receive a letter within 2 weeks which you need to allow you to transfer money to a new ISA.

I'm not counting my chickens *just yet* till the money actually arrives, but I'm mightily impressed at the hassle-free nature of the process, after a fairly slow start in early october. So.... full marks to the FSCS on this one from me!

Its actually quite an anticlimax after the weeks of wondering if I'd ever see my cash again!

G'night all

[jonb]

Has anybody else not received any email from the fscs yet? Just wondering whether I should start getting worried...

It reads very much like a 419 email or a phishing email to spam filters, so get worried as soon as possible.