Deposit payment terms
Terms of payment and consent to FSCS use of your personal data
Please note that under this agreement you acknowledge that certain of your rights transfer to FSCS. If FSCS decides not to pursue recoveries using those rights, then it will, if you request so in writing, assign those rights back to you.
By accepting payment of the compensation (or any part of it) offered by FSCS in respect of a deposit-taking firm in default (the “Bank”) as set out in the letter from FSCS, you agree and acknowledge as follows:
1. You are claiming compensation for losses arising as a result of FSCS-protected business with the Bank (the “Claim”).
2. You accept the offer of compensation in full and final discharge and settlement of the obligations of FSCS to pay up to the maximum amount of compensation payable under Rule 4.2 of the Depositor Protection Rules . You understand that any payment of compensation is payable by FSCS to fulfil your entitlement to such compensation from FSCS in respect of the Claim. This does not affect your right to claim further compensation from FSCS in relation to deposits exceeding the maximum payable under Rule 4.2 if it qualifies for compensation as a Temporary High Balance (“THB”) under Chapter 10 of the Depositor Protection Rules.
3. Where the compensation is in relation to a THB, you accept the offer of compensation in full and final discharge and settlement of the obligations of FSCS to pay up to the maximum amount of compensation payable under Rule 4.3 of the Depositor Protection Rules.
4. You acknowledge that your rights against the Bank up to the amount of compensation that is payable to you by FSCS (including in relation to any THB, whether or not an application has yet been submitted to FSCS) transfer to FSCS absolutely on the payment of compensation (or any part of it) to you.
5. You acknowledge that your rights against any other person involved or connected to the Claim (which constitute a “Third Party Claim” as defined in paragraph 15 below) up to the amount of compensation that is payable to you by FSCS (including in relation to any THB, whether or not an application has yet been submitted to FSCS) transfer to FSCS absolutely on the payment of compensation (or any part of it) to you.
6. The rights against the Bank and/or any other person that transfer from you to FSCS (including in relation to any THB, whether or not an application has yet been submitted to FSCS) are the “Transferred Rights”.
7. On the payment of compensation (or any part of it) to you, you will no longer have the right to make any claim in relation to the Transferred Rights against the Bank or any other person in respect of the Claim or a Third Party Claim, and the right to make any such claims will be vested in FSCS. Any sums that would otherwise be payable to you in respect of the Transferred Rights will be paid instead to FSCS.
8. Despite Clause 7 above, if the amount of compensation being paid to you under Rule 4.2 is equal to the maximum amount of compensation payable under that Rule, you may submit a claim to FSCS for further compensation in relation to the portion of a deposit exceeding the maximum under Rule 4.2 to the extent that it qualifies as a THB under Chapter 10 of the Depositor Protection Rules.
9. You will not exercise any right or remedy that you may have or retain against the Bank or any other person arising out of, or in connection with the Transferred Rights, namely:
a. to rescind, set aside, avoid or otherwise alter any contract or obligation;
b. to set off, or reduce liability in respect of such a contract or obligation; or
c. any other right or remedy that is either personal to you, or has not been transferred to FSCS, or both.
10. If you recover any money or assets in respect of the Transferred Rights other than compensation from FSCS, you will immediately pay or transfer it to FSCS.
11. If the payment of some or all of the compensation (including in relation to a THB) should not have been made for any reason, you will immediately and fully repay to FSCS any such compensation, without any deduction or set-off, plus interest.
12. You will give all reasonable co-operation and assistance that FSCS asks you to give in connection with any investigation or pursuit by FSCS of claims in relation to the Transferred Rights, including providing documents, providing statements, swearing statements of truth and attending court to give oral evidence. If you make or give (or have made or given) any false or misleading statement, affirmation, or other evidence, you agree to indemnify and protect FSCS against any loss, liability, expense or cost that it may incur directly or indirectly as a result. You also agree, if asked by FSCS, to become a party to any proceedings brought by FSCS in respect of claims in relation to the Transferred Rights.
13. You will give such further help or authority that FSCS from time to time may require to give full effect to the transfer of your rights and/or claims to FSCS under and for the purpose of this agreement. If the transfer of your rights to FSCS as envisaged above is in any way defective, you agree that FSCS will still be entitled to benefit from those rights and/or claims and will be entitled to any proceeds of them. All such proceeds will be paid to FSCS. To the extent that any transfer of your rights to FSCS envisaged above is ineffective in law to pass any rights, claims or causes of action to FSCS, you acknowledge that FSCS may determine that you have irrevocably and unconditionally appointed the Chairman of FSCS for the time being as your attorney and agent in respect of such rights, claims or causes of action and that FSCS may pursue or enforce them on your behalf in whatever manner it considered appropriate.
14. FSCS may give a valid receipt to any person in respect of the Transferred Rights.
15. In this document, “Third Party Claim” means any right, claim or cause of action that you have or may have against any person other than the Bank or against any fund or property in the hands of any person other than the Bank in connection with or arising out of the circumstances giving rise to the Claim or otherwise relating to the Claim, whatever the nature of such claims.
16. This agreement is without prejudice to any rights which FSCS may have or acquire against the Bank and/or any third party and to the extent that such rights conflict with the terms of this agreement, FSCS may elect, to which election you consent, which rights and claims it shall pursue.
17. To the extent necessary to give effect to any right, claim or cause of action by FSCS, this agreement shall be severable in its terms.
18. This agreement shall be governed by and understood in accordance with English law and you irrevocably accept the exclusive jurisdiction of the English courts in respect of all matters arising out of or in connection with it.
Consent to FSCS use of your personal data - Data Protection
19. By accepting payment of the compensation offered by FSCS in respect of the Bank:
· You consent to FSCS, and any third party acting on their behalf, collecting and processing your personal data (which may include your name, contact details and bank details) in order to handle your claim for compensation or pursue recovery proceedings or otherwise for the proper exercise of their statutory functions or to comply with legal or regulatory requirements.
· You agree that FSCS, and any third party acting on their behalf, may obtain your personal data from relevant third parties (such as the Bank and/or its insolvency practitioner) in order to process your claim for compensation or pursue recovery proceedings or otherwise for the proper exercise of their statutory functions or to comply with legal or regulatory requirements.
· You authorise such relevant third parties to release such personal data to FSCS, FCA and PRA or any successors to them and any third parties acting on their behalf.
20. In addition, you agree that this may include obtaining, processing and disclosing of your personal data by FSCS to, or to FSCS by:
· the Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”) and any successors to them and third parties acting on their behalf to assist them in carrying out their statutory functions or otherwise to comply with legal or regulatory requirements; and/or
· the Financial Ombudsman Service (“FOS”) where FSCS considers it would assist FOS in carrying out their functions in helping to resolve complaints and/or the FSCS in resolving claims for compensation swiftly or pursuing recovery proceedings, for example ensuring there is no double payment or otherwise to comply with legal or regulatory requirements.
21. You agree that FSCS, FCA and PRA or any successors to them may outsource its statutory functions in processing your claim for compensation or pursuing recovery proceedings to carefully selected third parties. This may involve the sharing of your personal data between FSCS, FCA, PRA and such third parties.
Explanations applying to the Consent: FSCS means the Financial Services Compensation Scheme Limited and includes its officers, employees, servants and agents. The FCA and/or PRA may act as agent of FSCS or on its own behalf. Personal data has the meaning set out in section 1(1) of the Data Protection Act 1998.
22. By accepting payment of compensation offered by FSCS in respect of the Bank you make the following declarations:
· that you were not responsible for, nor contributed to, the Bank’s default;
· that you have not received any compensation of any kind in respect of the Claim other than from FSCS;
· that none of the deposit which gives rise to your claim was acquired in the course of money laundering or in any way comprised of or connected to the proceeds of crime;
· that your Claim against the Bank is not subject to any charge, lien, trust, assignment, negative pledge or other encumbrance or right in favour of any third party;
· that you are duly authorised to give valid receipt for any compensation paid and to agree to the terms for the offer and payment of compensation.
money placed in a bank or similar institution to earn interest or for safe-keeping.
The Financial Conduct Authority is the UK's regulator for the financial services industry.
Financial Ombudsman Service, for complaints or claims against firms that are still trading.
A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.
having insufficient assets to meet due debts or liabilities.