Vast majority of Icesave customers offered compensation, but more work to do, says FSCS

28th November 2008

The vast majority of Icesave customers have now been offered the opportunity to claim their cash back online from the Financial Services Compensation Scheme, after their internet bank was declared in default on 8 October.

In addition, the FSCS has sent application forms to just under 16,000 people who did not have nominated linked accounts at Icesave. The FSCS has already received close to 8,000 completed forms back and these are being processed as a matter of priority.

FSCS confirmed there are a number of customers that have not yet been sent a second email or an application form and these are now receiving special attention.

"We've offered compensation to the vast majority of Icesave customers through the electronic process over the last three weeks, and are really pleased that nearly 150,000 people have already completed the online process, but there is more work to do" says FSCS Chief Executive Loretta Minghella."

"We may have reached the vast majority but we are keen to help all Icesave customers. We know that those still waiting for a second email will be anxious to know what is happening, and we will continue sending out emails over the weekend. We are planning to publish another update for customers early next week to explain to them what they should do next if they haven't had their second email or an application form by then."

At the same time, FSCS is encouraging people who have received their second emails but not yet claimed their compensation to go online to complete the process, which only takes a few minutes. Once completed, the money is transferred using BACS and will arrive in their nominated accounts within five working days.

So far, the FSCS has signed off transfers of more than £2.6bn through BACS to the nominated accounts of Icesave customers while fixed term accounts totaling almost £0.45bn are being held to maturity at the election of the customers concerned.

There will be a full progress report published on the website next week.

Jargon Buster

  • In default

    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.