Depositors with Icesave, the UK savings arm of the failed Icelandic bank Landsbanki, will receive compensation without the need for a lengthy application process it was announced today.
The Financial Services Compensation Scheme (FSCS) says its priority is to ensure savers get a speedy payout through an accelerated compensation process.
Following the collapse of Landsbanki, which had over 200,000 UK savings customers, the Government stepped in to give a 100% guarantee for all deposits and also provided protection for ISA tax status.
The FSCS has detailed the stages involved in the process, which will ultimately see cash transferred electronically into a linked account.
Icesave customers will shortly receive a letter detailing the full process and will be written to again with instructions on an electronic process which will confirm the transfer.
Depositors will be contacted in several waves throughout the process to manage the flow of payments and ensure tight security.
“We have been working hard to establish a way of compensating retail depositors of Icesave without the need for a paper-based application process,” says Loretta Minghella, chief executive of the FSCS.
“We will be contacting retail depositors to tell them how the transfer process will work and when they can access the system.”
The FSCS says its automated payment process should be ready within ten days and expects the first payments to begin in the second week of November.
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