10,000 Icesave savers still haven't claimed compensation

23 December 2008 / by Rachael Stiles
Some 90 per cent of Icesave customers have already used the electronic system to claim compensation for their money which got trapped in the savings provider when it collapsed in October, but there are still almost 10,000 eligible people who have yet to do so.

The Financial Services Compensation Scheme (FSCS) has already received claims from about 188,738 people through the online system, since the service became available in November, but those who have not yet made a claim only have until the end of the month when the service will no longer be available.

After that time, the only way customers will be able to reclaim the money in their savings accounts is through a postal paper service, but this could take an additional six months to process.

The online savings account provider went into administration along with its parent company, Icelandic bank Landsbanki, in October, effectively freezing its customers' money.

The Icelandic government eventually said that it would honour its agreement to refund the first £18,000 of savers' money, but the UK government had already promised that no Icesave customers would lose their money and the FSCS has proceeded to issue the refunds.

According to the FSCS, there is "no obvious reason" for why some savers haven't yet claimed their money. Some customers only had small amounts in the account and therefore might not have bothered to claim it back, it said, while other accounts are described as containing "an amount you would want to reclaim".

Some of the people who have not made a claim have money in fixed rate savings accounts with Icesave and are waiting for the maturity date of their investment before getting it back.

© Fair Investment Company Ltd