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By Kara Gammell
Last Updated: 7:54AM BST 17 Oct 2008
Something else to watch out for.
Last Updated: 7:54AM BST 17 Oct 2008
The savers, who will need proof of their savings in order to reclaim money held in the bust bank from the Financial Services Compensation Scheme (FSCS), cannot find information about their Individual Savings Accounts (Isas) online.
It has also emerged that the FSCS, which is responsible for compensating the 300,000 Icesave customers who have lost their savings thanks to the collapse of Icelandic bank Landsbanki, cannot guarantee that savers will have their money back before Christmas.
Mark Oates, an FSCS spokesman, said: "As we are dealing with effectively three bodies across two countries, we are working towards a scheme that simplifies the process. However, working this system out takes time and we urge customers to keep checking our website for regular updates."
The organisation has not yet sent out letters to customers explaining how they can claim their money back, even though EU law states that compensation due after a bank failure should be paid within three months. This law applies whether the money is due through the FSCS itself or through a "passport" scheme, where the money is due from another country, as was supposed to be the case with Icesave.
The FSCS should, over the next few weeks, contact all British customers and ask if they think they are entitled to compensation. Mr Oates said: "The process can be accelerated by customers returning the claim forms as soon as the letters are received."
Customers who need to claim back money will need to provide proof of the balance of their Icesave savings. However, those holding Isas cannot even find that proof online.
One Icesave customer said: "I have substantial savings with Icesave, having chosen the bank because of the good rate and its 'easy access' terms. Now, I can view the balance on one of my accounts, but my Isa appears to have vanished.
"According to the FSCS, this has happened to many customers, and is quite nerve-wracking given that we need proof of our savings with the bank in order to reclaim our money. I have been assured I will get my money back, but have had no contact from Icesave or the FSCS yet, so I am playing a waiting game and trying not to worry."
Mr Oates said: "Customers can be reassured that their money will not have 'simply disappeared'. We will be able to check the records of Icesave customers and will be able to cross-reference any claims."
All compensation for Icesave customers is being handled by the FSCS.
The Treasury has stepped in to guarantee all British savers' money - belonging to more than 300,000 people with accounts with the Icelandic bank worth in total £4bn - regardless of how much they had in their accounts. The Treasury has also promised to cover any shortfall that may arise from the Icelandic authorities being unable to fund their part of the compensation scheme.
Those with Icesave Isas will not lose their tax-free allocation for the year, the Treasury has confirmed, although it has not yet explained how this guarantee will work in practice.
However, the timing for when their money will be returned is far less clear.
It has also emerged that the FSCS, which is responsible for compensating the 300,000 Icesave customers who have lost their savings thanks to the collapse of Icelandic bank Landsbanki, cannot guarantee that savers will have their money back before Christmas.
Mark Oates, an FSCS spokesman, said: "As we are dealing with effectively three bodies across two countries, we are working towards a scheme that simplifies the process. However, working this system out takes time and we urge customers to keep checking our website for regular updates."
The organisation has not yet sent out letters to customers explaining how they can claim their money back, even though EU law states that compensation due after a bank failure should be paid within three months. This law applies whether the money is due through the FSCS itself or through a "passport" scheme, where the money is due from another country, as was supposed to be the case with Icesave.
The FSCS should, over the next few weeks, contact all British customers and ask if they think they are entitled to compensation. Mr Oates said: "The process can be accelerated by customers returning the claim forms as soon as the letters are received."
Customers who need to claim back money will need to provide proof of the balance of their Icesave savings. However, those holding Isas cannot even find that proof online.
One Icesave customer said: "I have substantial savings with Icesave, having chosen the bank because of the good rate and its 'easy access' terms. Now, I can view the balance on one of my accounts, but my Isa appears to have vanished.
"According to the FSCS, this has happened to many customers, and is quite nerve-wracking given that we need proof of our savings with the bank in order to reclaim our money. I have been assured I will get my money back, but have had no contact from Icesave or the FSCS yet, so I am playing a waiting game and trying not to worry."
Mr Oates said: "Customers can be reassured that their money will not have 'simply disappeared'. We will be able to check the records of Icesave customers and will be able to cross-reference any claims."
All compensation for Icesave customers is being handled by the FSCS.
The Treasury has stepped in to guarantee all British savers' money - belonging to more than 300,000 people with accounts with the Icelandic bank worth in total £4bn - regardless of how much they had in their accounts. The Treasury has also promised to cover any shortfall that may arise from the Icelandic authorities being unable to fund their part of the compensation scheme.
Those with Icesave Isas will not lose their tax-free allocation for the year, the Treasury has confirmed, although it has not yet explained how this guarantee will work in practice.
However, the timing for when their money will be returned is far less clear.