Posts Tagged ‘compensation’

Icelandic compensation to start soon

Thursday, October 9th, 2008

Thousands of UK customers of two of the collapsed Icelandic banks will receive application forms for compensation for their lost savings in the next week. Most customers of Kaupthing and Heritable Bank will have compensation automatically transferred to ING Direct (its new owner). ING Direct is acquiring £2.5bn of deposits and 160,000 customers from Kaupthing and £538m of savings held by 22,200 people with Heritable Bank.

Icesave customers should learn on Friday how to claim their compensation. The UK Treasury said the three banks were in default but savers’ money was safe.

Will the UK pay full Icesave compensation?

Wednesday, October 8th, 2008

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So far, Iceland has claimed that it has the funds to compensate the UK’s 300,000 savers who have deposits with its Icesave accounts, so all customers will have to sit tight for the time being. Compensation must be provided within three months under EU rules.

However, if this turns out to be incorrect, the Financial Services Compensation Scheme (FSCS) has said that it will not pay back the full £50,000 if the Icelandic system finds it is unable to pay back any individual’s funds owed up to its guarantee of 20,000 EUR (£16,000). So if you have £50,000 saved with Icesave and the Icelandic system cannot meet its obligation of £16,000 owed, then the UK system will only provide the ‘topped-up’ additional sum of £34,000.