Icesave customers to start receiving compensation

A recent report has shown that the thousands of Icesave customers that lost their savings as a result of the collapse of Icelandic bank Landsbanki will start receiving their money back under the Financial Services Compensation Scheme soon, and most should have their money back by the end of November. Many consumers lost their savings after putting their savings in high interest Icesave accounts.

After the collapse of the bank the Icelandic government failed to honour its obligations over compensating UK customers, and the UK government stepped in and promised a 100% guarantee to all those with money in UK branches of the Icelandic bank, which meant that none of the consumers affected would lose their money even if it was over the £50,000 savings guarantee threshold.

Affected consumers will be contacted over the coming couple of weeks and guided through the claims process. One official said: “They’ll be guided through the FSCS claims service so they can access their savings, view their balances and then transfer their money to their linked accounts. The money will then be paid by BACS into their linked accounts within two to three days after that’s been completed.”

He added: “We anticipate we’ll be completing the whole process so the vast majority of retail customers will receive their money during November.”