Icesave customers receive extra help
October 20, 2008
UK customers who had savings with the collapsed Icelandic bank, Icesave, have been told by the government that they will receive a 100% guarantee on any savings that they had in that bank. Officials have said that the Icelandic government has refused to guarantee the money of UK savers and has frozen their assets.
At present the safety net for 100% guarantee on savings stands at £50,000 in the UK following a recent increase in the threshold from £35,000. However, this will not apply to Icesave customers, who will receive a guarantee on all of their savings so that nobody loses out. A Treasury official said: “We guarantee that no depositor will lose any money as a result of the closure of Icesave.”
Chancellor, Alistair Darling, said: “The Icelandic government, believe it or not, have told me yesterday they have no intention of honouring their obligations here. Because this is a branch of a foreign bank the first call would be on the Icelandic compensation scheme which, as far as I can see, hasn’t got any money in it. The British scheme would top that up to £50,000, but people over and above that would lose out.”
The Prime Minister of Iceland said that the Icelandic government would do all possible to help raise funds to assist with compensation. He said: “The government of Iceland is determined not to let the current financial crisis overshadow the long-standing friendship between Iceland and the UK.”
Written by Peter · Filed Under News Banking
I am very concerned about my savings with icesave. I was led to believe I had made a success withdrawal of my money, by telephone, on October 7th. My account was deleted at the same time! I soon realized that my withdrawal had been stopped when I called icesave. However, because my account had been deleted, I was obviously unable to get a printout of my account. I have written to them, emailed and tried calling on numerous occasions, but to no avail!
I have received no notification of how to get compensation at all. I am at a total loss, no proof that I have money with the bank. What do I do? Icesave is uncontactable.
Hi
Could the British part of the rescue package be paid early as an intrim payment.
Reg Barnes
Bende, I had exactly the same problem as you, but I clicked on the link “reset your password” (just under the icesave login) and this worked – the new password that was emailed to me “unlocked” my account and I could get in and see my final balance – which I PROMPTLY PRINTED OFF.
Hope this helps!
When banking with Iceland I enquired if my money would be placed in a british holding bank and the answer was that it would be held in barclays bank, so why cant they pay my money back. linda,
Bende, Just a thought . you could ask your bank if they can give you records of all BACS/DD transfers into and out of the icesave account over the past however long you’ve had the account. That should give you a form of proof / reassurance…minus the interest built up of course.
I’m in the habit now of hitting print screen when doing any online banking .. who knows which bank is going tits up next .
Keep checking the FSCS website for details on getting your money back. Have a big chunk in there myself. Good luck ..