Icesave compensation for ISAs delayed by printing problems

11 December 2008 / by Rachael Stiles
Some Icesave customers who are waiting to receive compensation for the money they had saved in ISAs with the online savings provider when it went into administration in October, are having their refunds delayed by printing problems.

Those who have had troubleshooting issues in the past might sympathise with the Financial Services Compensation Scheme (FSCS) which has identified an issue in relation to ISA certificate data, which has delayed some of the certificates getting printed and sent out.

The FSCS says that this has resulted in some customers of the online savings account provider receiving their compensation later than it had originally planned, for which it apologises.

More than 9,000 Icesave customers had already received their ISA certificates when the FSCS encountered the problem, and it said it would be sending out a further 54,000 this week and 10,000 next week.

UK Icesave customers will be able to take their ISA certificates to a new provider by April 5 2009 and open a new Individual Savings Account to avoid losing their tax status.

The certificates are personalised for each customer and state how much they have in the ISA so that they can transfer it to another bank or building society.

As of Monday this week, 174,000 of the 198,219 customers eligible for compensation had completed the transaction process and received their money, but the FSCS were still waiting for 24,000 to do so before the deadline on December 30.

© Fair Investment Company Ltd