24,000 no-show Icesave customers urged to claim compensation

08 December 2008 / by Rachael Stiles
The Financial Services Compensation Scheme has issued a statement urging customers of Icesave, the collapsed Icelandic savings account provider, to claim the compensation they are owed.

The FSCS has contacted almost all of the 214,713 Icesave customers to inform them how to claim compensation for their savings accounts, frozen since Icesave went under with its parent company Landsbanki, Iceland's biggest bank. But, of the 198,219 customers which are eligible to make their claim using the online system, 24,000 savers have yet to do so.

As it hoped, the FSCS sent emails to all of Icesave's customers by the end of November, providing instructions on how to complete the online transaction, and £3.2billion of an approximate £4billion in savings has been refunded to depositors.

The online accelerated compensation process is only available until December 30, allowing customers to complete an online application and receive their money within five working days. After that date, however, the UK customers who have not yet claimed their money will have to do so via a paper application process in January, which will take up to six weeks to process.

While there are still some customers who have completed the claims process but have yet to receive their money, the FSCS says that these claims are being dealt with as quickly as possible.

"We are glad to have been able to help so many savers in such a short period of time. The accelerated online process we have created has enabled the vast majority of Icesave customers to claim their compensation." said Jonathan Clark, FSCS director of claims.

"Those who have not yet claimed can do so by logging on to their Icesave accounts and following the instructions in the second email, which is posted on our website. The process only takes a few minutes and will avoid any further waiting or paperwork."

In order to target those customers which might not have access to their emails, the FSCS is this week sending letters to any which have not yet claimed their money and are eligible to do so.

© Fair Investment Company Ltd