2008-11-04 14 h 23 :: telegraph.co.uk :: Icesave customers to be told how to claim

http://www.telegraph.co.uk/finance/personalfinance/savings/3378695/Icesave-customers-to-be-told-how-to-claim.html
Icesave customers to be told how to claim
Thousands of Icesave customers who have had their money frozen in their accounts, following the collapse of its Landsbanki, will receive an email today telling them how to claim compensation.

By Emma Simon
Last Updated: 2:23PM GMT 04 Nov 2008

Icesave customers can expect two emails from the FSCS in the coming days Photo: REUTERS
The Financial Services Compensation Scheme (FSCS) is sending an initial email to all 230,000 Icesave customers setting out how the compensation process with work. This will be followed up with a second email giving precise details of how they can access their accounts and move their money back into a UK account.

The FSCS said this second email would be staggered, with the first ones being sent this week. This means the first customers should start getting their money next week, with most claims being paid by the end of November.

Icesave customers found they were locked out of their accounts on October 7 when its parent bank Landsbanki went into administration, as the Icelandic banking system went into meltdown. Landsbanki also owned Heritable Bank in the UK, but the majority of its savers have found their funds transferred to the Dutch bank ING.

Savers with Kaupthing Edge, which was owned by Kaupthing Singer & Friendlander, a rival Icelandic bank, have also had their accounts transferred to ING.

Although the FSCS normally only guarantees a maximum of £50,000 if a bank goes under, the Government has said that savers would be compensated in full, following the "extraordinary circumstances" that have led to the global banking problems.

There have been concerns that Icesave customers could be the victims of "phishing" attacks, where internet fraudsters send out spoof email in order to trick consumers into revealing accounts details and passwords.

The FSCS said that is would stress in all its correspondence that no one from the scheme will ask customers for private bank account details. Anyone receiving telephone calls or emails asking for such information should report it to the authorities.

Any Icesave customers who has not received an email by the end of this week should contact the FSCS on 0845 7300 131.