Kaupthing Singer and Friedlander: progress update

12th December 2008

The FSCS has now received over 1,500 application forms back from savers at Kaupthing Singer and Friedlander who did not transfer to ING Direct. Our claims teams have been working hard to process these through data gathering and by checking the eligibility of the claims.

The FSCS has been working closely with Ernst and Young, the Administrators, who are in the process of verifying the final account balances of these claimants, which will enable us to complete some of the claims. We have already been provided with some of this data, and are now finalising claims from savers with 10 and 32 day notice accounts, and hope to be in a position to start paying compensation before Christmas.

Those account holders with fixed term accounts and 90 or 180 day notice accounts will be paid their compensation shortly after maturity. For holders of fixed term accounts which have passed maturity since the date of administration (8 October 2008), we are working to finalise claims based on the information we have received from the Administrators.

The FSCS recognises that customers of Kaupthing Singer and Friedlander who are involved in this claims process will be frustrated and concerned about receiving their compensation, and we would like to reassure them that our priority, as always, is to pay the compensation that is owed to them as quickly as possible. We are doing all we can to achieve this.

Please continue to check our website for further updates.