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Icesave customers reimbursed for Christmas

Savers who haven't made claim urged to do so

The majority of savers with failed Icelandic internet bank Icesave have been paid back in time for Christmas, according to the UK’s depositor protection scheme.

More than 200,000 savers lost money through the collapse of Icesave, which was part of Icelandic bank Landsbanki, in October. But the UK Government stepped in to pledge that the group’s 214,713 savers would get their money back and told those affected to apply for compensation.

More than 199,000 have now had their savings returned through the Financial Services Compensation Scheme(FSCS). For more information on the FSCS, visit the Which? Protect your savings page.

A relief

Donna Brooks, of Blaenavon, South Wales, had £200,000 deposited with Icesave after being awarded compensation following a horrific car accident eight years ago. The mother of one used the interest to draw a small salary and to pay for treatment after her injuries prevented her from returning to work as an administrative assistant.

She said she was now looking forward to Christmas after getting her money back. “I was very relieved,” Brooks said. “The process went smoothly and we got the money back about six weeks later. Still, for a while it was frightening.”

To date, the FSCS has paid out £3.52 billion in compensation. It said of the 198,219 people who were eligible to use its online claims system, 188,738 savers have already done so. The remaining 9,481 customers are being urged to use the online application form before the deadline of December 30.

Foreign banking

If you are thinking of investing in an overseas bank, follow Which?s advice on how to protect your savings in foreign banks. And while you’re at it, take a look at the Which? savings accounts best buys table.
© Press Association 2008

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