Icesave default paves the way for help for 300,000 UK consumers

The UK authorities and FSCS are stepping in to help customers of Icesave after the firm was declared in default today (8 October 2008) by the Financial Services Authority (FSA).

The move paves the way for FSCS to help the bank's UK customers. It follows the announcement by the Treasury this morning confirming that the Government will stand behind UK retail Icesave depositors to ensure they are paid out in full.

FSCS is working closely with HM Treasury and the FSA to take the necessary steps to pay people back their money.

FSCS Chief Executive Loretta Minghella said: "We know that many savers with Icesave are anxious about their savings. Following the Chancellor's announcement today people can be confident they will be repaid in full.

"We are working closely with all concerned on the practical arrangements to get people their money back as quickly as possible. We hope to be in a position to say more about the arrangements by the close of business on Friday, and we will publish updates on our website. "

Consumers can find more information about the FSCS at fscs.org.uk