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Icesave customers receive FSCS email about reclaiming frozen cash

06 November 2008 / by Rachael Stiles
Customers of Icesave have now received the first of two emails from the Financial Services Compensation Scheme, detailing the process of claiming compensation for their cash which has been frozen in Icesave since it was declared as being in default last month.

Icesave – the UK savings arm of the collapsed Icelandic bank Landsbanki – has more than 200,000 savings account customers, which have a collective £4billion currently locked in the bank.

"When you access the Icesave website to proceed with the payment process, you will be asked to confirm your identity and the details of your selected nominated account." the email states.

The Icelandic Government is responsible for part of the compensation, and the FSCS is meant to then top up any other cash up to the compensation limit of £50,000. However, since the Icelandic Prime Minister, Geir Haarde, said that Iceland would be unable to compensate UK savers, Alistair Darling has guaranteed 100 per cent of their cash.

The second email will be sent out over the coming weeks, in phases to manage the flow of claims and payments, and to improve security. It will contain detailed instructions on how to complete the electronic transfer of funds into savers' nominated accounts.

Compensation payments are intended to start in the second week of November as planned, the FSCS has said.

Customers will have to log on to their existing Icesave accounts to complete the short online process, after which their money will be transferred within five working days.

"We are pleased to say the first email is now going to UK Icesave customers with more information about how they can claim back their money." said FSCS chief executive Loretta Minghella.

"This marks the first stage of an accelerated payout process that will benefit the vast majority of UK Icesave customers. We have been working hard to get the system in place. It is another step towards offering compensation to the vast majority of UK Icesave customers by the end of November."

The charities, local authorities and other organisations which have money trapped under the rubble of the collapsed Icelandic banking system have yet to hear whether or not they will be compensated by the UK government.

The email stipulates that customers who have any queries or concerns regarding the transfer process should contact the FSCS special Icesave helpline on 0845 7300 131.

© Fair Investment Company Ltd