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FSCS has paid £0.25bn to Icesave depositors so far

The Financial Services Compensation Scheme says it has paid £0.25bn in compensation to UK Icesave customers in the last week.

Since the FSA declared the firm in default on October 8 the FSCS has developed, tested and started to implement an accelerated online claims process, based on a modified version of Icesave’s website.

Using this electronic process the FSCS began inviting Icesave customers to reclaim their money during a low volume trial that started last week.

The FSCS says initial indications from the testing suggest that the average time it takes a consumer to effect the BACS transfer is less than four minutes and very few have required telephone assistance during the process.

So far, the overwhelming majority are opting to transfer their money to their linked account rather than waiting for fixed term accounts to mature.

The FSCS is now increasing the number of people receiving an email inviting them to log on using their existing details and follow a short process to claim their compensation.

The FSCS confirmed that the Icesave emails are being phased for security and operational reasons.

FSCS chief executive Loretta Minghella says: “Five weeks ago a lot of Icesave savers were worried that they were going to be left high and dry. Now they can be confident that the electronic process is underway and people are getting their money back.”

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