FSCS is sending forms to savers at Heritable and Kaupthing Singer and Friedlander

17th October 2008

Following last week's announcement that the Financial Services Authority (FSA) has declared Heritable and Kaupthing Singer & Friedlander in default, the Financial Services Compensation Scheme (FSCS) can confirm that it is now sending out compensation claim forms to individual savers who did not transfer to ING Direct. The Scheme will also send forms to about 2,000 business account holders early next week.

The FSCS has finalised its process for compensating customers of the firms, working closely with Ernst and Young, the administrators of the two banks. FSCS received the details of over 16,000 accounts from the administrators including for 1,200 individual retail customers of the two firms whose accounts did not transfer to ING Direct. As a result, they, as with small business customers, may be eligible to claim from FSCS.

Our message to savers with the two firms entitled to our protection is that your money is safe. When you get your form, please return it to us as soon as possible. Our claims teams are standing by to process claims swiftly.

Anyone who thinks they may be entitled to claim but who does not receive an application form by Thursday 23 October should call our helpline on 020 7892 7300 and select option one.

As well as the compensation to which eligible depositors are entitled from FSCS, depositors may also be entitled to HM Treasury supplemental payments for those whose balances exceed the amount FSCS may pay (i.e. above the FSCS compensation limit of £50,000).

The FSCS expects to process payments on behalf of HM Treasury so depositors will not need to contact the Treasury separately at this time.