Icesave Deadline

14th September 2009

The FSCS has written to all Icesave customers who have yet to claim compensation inviting them to do so as soon as possible. Customers are asked to make claims to FSCS by 15 October at the latest, as this will allow us to register their claims and submit them to the Bank in Iceland by the final deadline of 30 October 2009.

If the FSCS does not receive a claim by the cut off date of 30 October, customers may not be able to claim compensation. This will also apply in respect of any payment of compensation by or on behalf of the Chancellor of the Exchequer.

Letters have also been sent to a number of existing claimants whose claims have yet to be paid requesting a power of attorney from each individual named account holder. This is to make the processing of their claim with the Bank itself easier and faster, and these are also to be returned by the preferred deadline of 15 October 2009, and certainly no later than 30 October 2009.

On 7 October 2008, the UK branch of the Bank, which operated Icesave, stopped trading and, for the purpose of claims to the FSCS, was declared to be in default by the Financial Services Authority on 8 October 2008. The FSCS provides protection for customers of authorised deposit-taking firms, such as banks, if they cannot repay deposits to their customers.

Depositors with Icesave are protected for the first part of their loss (up to £16,872.99) by the Icelandic Depositors' and Investors' Guarantee Fund (the "DIGF") and for the next part of their loss (up to £50,000) by the FSCS. On 8 October 2008, the Chancellor of the Exchequer confirmed that all depositors with Icesave would be fully compensated for their deposits, including what they are entitled to from the DIGF and any amounts above the maximum compensation payable by the FSCS.

Read our original Icesave Invitation Email.

Jargon Buster

  • Deposits

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

    Deposit and Investor Guarantee Fund

  • 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.