Guernsey Icesave customers outraged over their money

Following the Icelandic banking collapse many consumers that had savings in Icesave accounts in Guernsey have ended up losing all of their money. This is because the UK guarantee on consumer’s money in Icesave accounts only applied to accounts in the UK, as accounts in Guernsey were considered to be off-shore. With no guarantee from the Icelandic authorities many have lost all of their money.

However, consumers with Guernsey accounts who have lost their money are outraged because they allege that their money is being used to compensate other customers of the collapsed bank. Reports claim that around two thousand Guernsey Icesave customers will lose 70% of their savings collapse of Landsbanki, as there is no compensation scheme in place in Guernsey.

Many of those that put money into these accounts were Brits who had moved abroad and were therefore unable to open UK accounts. They have argued that as UK taxpayers they should receive the same guarantees as customers with UK accounts have received from the government.

However, the Treasury has said that it has no obligation to do this, stating: ‘Investors with accounts outside of the UK’s jurisdiction and the regulation of the FSA should talk to the relevant authorities where their money is invested. Following discussions with the Isle of Man, the UK Government has agreed to represent the Island in high level discussions with the Icelandic authorities. The UK Government would also be willing to represent Jersey and Guernsey should it be asked to do so.’