Approximately 88% of Icesave customers have completed the process for compensation from the FSCS, following the closure of their internet bank.
However, 24,000 people have not yet transacted out of the 198,219 customers eligible to use the scheme. FSCS is urging individuals to complete the online process and claim their compensation as soon as possible.
About £3.2bn has been paid to depositors UK Icesave customers following emails sent to all eligible for compensation on 30 November. Furthermore, some fixed rate savings account holders with combined deposits of £650m have elected to be paid compensation at maturity.
FSCS' online process will remain active until 30 December, after which UK customers of the bank who have not claimed, will not be able to do so using the electronic method.
However, a paper application form will be sent to those who have not transacted online in January 2009 and FSCS will aim to process these application forms within six weeks of receiving them back from claimants.
Jonathan Clark, director of claims at FSCS, says: "The accelerated online process we have created has enabled the vast majority of Icesave customers to claim their compensation.
"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," he adds.
FSCS is sending letters this week to individuals who are eligible to claim online but have not yet done so. There were around 17,000 UK Icesave customers who were unable to claim compensation online, with most having been sent a paper application form and about 1,000 to receive them shortly.
"We are continuing to work as fast as possible in order to compensate the UK Icesave customers still waiting for compensation," Clark added.
However, the sending of some ISA certificates has been delayed after a problem in relation to certificate data in pre-print testing, which has been resolved. FSCS is sending out ISA certificates to approximately 9,000 Icesave customers this week and about 50,000 certificates next week.
UK Icesave customers will be able to use the certificates to open new ISAs by 5 April 2009 without losing their tax status.IFAonline
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