Chicken bald back

[Tessa the Duchess]

Does anyone know how long a bankrupt bank will take to pay out anyone who has the misfortune to have savings with them?

 

Hmmm good question. If a company goes bankrupt it goes into administration and all it's assets etc. are frozen. The first people to get paid out are the tax people then the people who are owed money then the shareholders. I suppose if you were a customer and therefore someone who is owed money you would get something, but it would be a small fraction of what you are actually owed, it's a scary thought, also it would probably take years.

 

Tessa

[Valkyrie]

The Martin Lewis programme was quite informative and he said as long as you keep under £30,000 in any British bank you will be covered - 30 grand would be nice! I wonder where Mr Brown has his savings? That would be useful - or is that what happened when the gold reserve was sold off at a low price

As we are self employed our savings go towards our pensions, like many others in the private sector. I assume pension plans are likely to be affected because they are invested in stocks and shares too, I think - oh yes another thing that Brown messed up for many people.

OH is not happy about tax payers having to pay out for all this. Assuming that a lot of people will be out of jobs as a result, there will be more people on benefits and even less tax revenue to cover the losses, so could take even longer to sort out.

I used to work for a bank and when I left they had just started the hard selling of products and I didn't like it. I preferred the old way - and apparently it sounds as though they are having to going back to that system.

Seems that Iceland is about to go bankrupt. I hope things don't go the same way here. These really are worrying times.

[The Spencers]

For people with Icesave accounts the FSCS (Financial Services Compensation Scheme) should contact you over the next few weeks if you hold an account with a 'simple' form to fill in. The Telegraph had an article on how to claim this morning;

 

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3160539/Icesave-collapse-What-customers-should-do-to-get-their-money-back.html

 

In the interim you should print off a statement from the Icesave website so that you have your account details and proof of the amount in the account. Unfortunately chances are that you won't earn any interest between now and getting your money back.

 

The FSCS says it will try to process claims in six months in their FAQ section. They also are updating their website fairly regularly;

 

http://www.fscs.org.uk/consumer/

 

If you're worried about other banks Martin Lewis' website has a list of which banks are covered and who by.

 

Hope that helps.

[Blackrocksrock]

I am so sorry for all who have savings in these banks - we paid off our mortgage rather than save anything so result little savings but still supposed to have 2 endowment policies due out in a couple of years (which should have paid the mortgage but we saved loads of interest paying early).

 

We did not go fancy holidays or do fancy things. Wish we had done really! and hope that the endowments pay out ok at that date now.

 

I hope you all get your monies ok - but just where is safe nowadays!. A friend who works in a bank said people were walking down the street with £30,000 in their pockets to deposit it in other banks/institutions. How scary is that?

[Ain't Nobody Here]

Good news that it's all being sorted. Thanks for that info, TheSpencers . I'm off to check the ICICI bank now .

 

Would you believe my OH noticed Icesave in the papers at the w/e. Didn't mention it as he didn't know we had money in it . (To be fair, I don't know if I told him ).

[Valkyrie]

We paid off our mortgage earlier this year (I think it was) and we also went without nice things until we had saved for them. It's horrifying to think that people are walking around with that sort of cash!! It would be far safer to have the funds transferred electronically - after setting up an account at an alternative place first. Could be a muggers paradise out in the high streets. We will wait until we are contacted after all better the devil you know . . . and don't keep all your eggs in one basket!

[Ain't Nobody Here]

One of OH's colleagues handed him a packet yesterday and said "guess what that is".

 

It was £20,000 in cash .

 

(Pity OH didn't have his running gear on at the time .)

[bronze]

Theres one thing to be said for having no money to start with.

[..lay a little egg for me]

They are discussing icelandic banks and the credit crunch on radio 2 now...

[chickencam]

Our local council have their cash reserves in Iceland so it will be interesting to see if the bin men etc get paid or whether anarchy will break out

 

We are seriously considering paying off our mortgage too, but we're not quite there yet

[The Spencers]

The FSCS website

 

http://www.fscs.org.uk/consumer/

 

says that they are trying to sort out an accelerated payment process for Icesave customers, so hopefully we should see some money before too long.

 

They should be issuing some 'guidance' on how to claim sometime this week.

[Cate in NZ]

I'm late to this thread as I didn't know very much about the bank concerned, and didn't think that it affected me. Too wrong . Last weekend I spoke to my Mum who had to break the news that she and her partner could no longer afford to come over here on holiday in February, as they had planned, because her partner had all his money in IceSave Landbanski, and now he only has his State & work pensions left...not enough to fund a month Down Under .

I'm going to forward him the links that have been posted, just in case he's not aware of them.

I hope that all of you that have lost money can get it all back.

I'm worried too, reading all this. It's pretty unusual for hubby & I to have any cash, normally we live pretty much hand to mouth, but in April we sold our UK home and a fair few possessions, and raised a considerable sum of money in doing so. Since we've not yet bought a property over here that money is sitting in a UK bank account, and reading these stories is making me very nervous indeed.

I think I'll stop hubby from gazing at exchange rates .....and bring it over.