FSCS urges Icesave customers to claim their compensation

10th December 2008

FSCS has contacted almost all 214,713 Icesave customers offering them compensation following the closure of the internet bank Icesave. Of the 198,219 customers eligible to use the online system more than 183,000 people have now completed the process. However, there are still around 15,000 Icesave customers who have not yet transacted. FSCS urges those individuals who have not yet claimed their compensation to log on to their Icesave accounts and, following the instructions in the second email, complete the simple online process as soon as possible. FSCS has sent letters to those individuals who have not yet claimed using the online process. The letter informs claimants that they can claim online as soon as they are able following the instructions in the second email.

By 30 November FSCS had sent emails to all Icesave customers eligible to use the online system offering them the chance to transact and claim their compensation. So far £3.3bn has been paid to UK Icesave customers. In addition, some fixed rate savings account holders, with total deposits of £678m, have chosen to be paid compensation at maturity.

The FSCS's online process will remain active until 30 December 2008. After that date, UK customers of Icesave who have not claimed will not be able to do so using the electronic process. In January 2009 FSCS will send a paper application form to those who have not transacted online.

There are around 17,000 Icesave customers who are unable to claim compensation through the online process. Approximately 16,000 of those have already been sent an application form and the remaining 1,000 will receive a form shortly. FSCS recognises the frustration of those customers who have not been able to use the online process to complete their transaction as we and they would have wished. We have started to process the application forms that have been returned and are working hard to complete claims within six weeks of receiving them back from claimants, and more quickly wherever possible.

The sending of some ISA certificates had been delayed after scheduled pre print testing identified an issue in relation to certificate data. This issue was relevant to a small proportion of the certificates and has now been resolved. For some people this has resulted in their ISA certificates arriving later than FSCS originally planned and FSCS apologises for any inconvenience this may have caused. FSCS sent out ISA certificates to more than 9,000 Icesave customers last week and will be sending more than 54,000 certificates this week, and a further 10,000 ISA certificates next week. UK Icesave customers will be able to use the certificates to open new ISAs by 5 April 2009 without losing their tax status.

Jargon Buster

  • Deposits

    money placed in a bank or similar institution to earn interest or for safe-keeping.
  • Eligible

    qualifying for compensation under Scheme rules.