Icesave Money Is On Its Way
Icesave customers should have their money back this month - just in time for Christmas.
Savers in Icesave can breathe a sigh of relief after the Financial Services Compensation Scheme (FSCS) confirmed the Icesave payout process is getting underway this week for UK depositors, with a view to starting compensation payments next week.
The FSCS has put in place a system to allow customers to receive their savings through an electronic payment into an alternative account. The UK government has already confirmed all depositors in Icesave will receive their money in full.
What's happening?
The first emails to customers are currently being sent out by the FSCS to explain exactly how the process will work. No personal or account details will be asked for, so customers will not need to take any action at this point.
This will be followed up by a second email which will be sent out in phases.
The second email will provide instructions on how customers can log onto their existing Icesave accounts to complete a short online process which will allow them to receive their compensation. To log onto their accounts, customers will need to use their existing User ID, their password and memorable information.
The process is expected to be relatively quick and once completed, depositors' funds will be transferred to an alternative account within five working days using the BACS system. The vast majority of customers should receive their money by the end of November, according to the FSCS.
The email will also explain how customers who have paid money into Icesave's ISA can protect the tax-free status of their cash, according to a FSCS spokesperson.
Can I get my money back any other way?
Those customers who do not wish to use the electronic process will still be able to claim compensation using a paper-based application form and will receive their compensation by cheque, although this is expected to take six weeks or so. The same process will also be used for anyone who does not have an alternative account for the money to be transferred to.
As a final word of caution, the FSCS has also warned customers that no-one from the FSCS will contact depositors by phone or email to ask for or check their bank account details. In addition, the Icesave website will be unavailable from now until the end of the week whilst it is developed to pay compensation. Customers are being told they should only log on once they have received their second email asking them to do so.
Any Icesave customers who do not receive their first email from the FSCS by the end of Friday should contact the FSCS on 0845 7300 131.
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