London Scottish Bank goes into administration

[Legal Beagles]

Treasury confirms it will protect all retail deposit savings with bank, which offers fixed-rate savings accounts and lends money to people with poor credit histories

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[Legal Beagles]

Bank forced into administration

London Scottish Bank goes into administration after the Financial Services Authority steps in.

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[Amethyst]

Re: London Scottish Bank goes into administration

London Scottish Bank plc.




1 December 2008
On 30 November, the FSA determined that London Scottish Bank plc should be prevented from accepting further deposits as it no longer met the FSA’s threshold conditions for authorisation. It was placed into administration later that evening by the Court on the application of its directors. Ernst and Young has been appointed as administrator.
As a result of the bank’s administration the Financial Services Compensation Scheme (FSCS) has been triggered to safeguard retail deposits. The FSCS is now putting arrangements in place to pay back customers and will provide further information for customers shortly. The Chancellor has taken action to protect FSCS eligible retail depositors above the FSCS limits.
Eligible retail depositors will be compensated through the FSCS with HM Treasury protecting balances above the current UK deposit limit of £50,000. The FSCS will administer the full payout of deposits.
London Scottish Bank plc based in Manchester, accepted deposits, and provides loans principally through door-to-door collection as well as mortgage business including ‘right-to-buy’ under local authority housing sales. The bank has approximately 10,000 depositors.
Further information about the FSCS can be found at www.fscs.org.uk or by calling 020 7892 7300.

[redbus]

Re: London Scottish Bank goes into administration

HMT treasury have issued a statement about an hour ago

HM Treasury has taken decisive action to protect the interests of retail depositors and wider financial stability following London Scottish Bank plc entering administration.


The Chancellor has put in place arrangements to ensure that all eligible retail depositors (that is, those depositors who are eligible to claim under the Financial Services Compensation Scheme (FSCS)) in London Scottish Bank plc will receive their money in full, including those with balances above the current £50,000 FSCS limit.
Retail Depositors (including individuals)
Retail depositors will receive their money in full when the term of their deposit matures. They will need to apply to the Financial Services Compensation Scheme to receive compensation. Further details can be found on the FSCS website http://www.fscs.org.uk/consumer/ or by phoning 020 7892 7300.
Wholesale depositors & other creditors
London Scottish Bank plc is in administration. Wholesale depositors are not eligible for FSCS compensation although they will be creditors in the administration. Creditors should contact the administrator Ernst and Young on 0207 951 2000.

Full details are here London Scottish Bank plc - HM Treasury

[jet_black]

Re: London Scottish Bank goes into administration

Don't they own Robinson Way and Co? I hope they go bust too

[ed.]

Re: London Scottish Bank goes into administration

Yup they do, and they are my new pet project.

[Curlyben]

Re: London Scottish Bank goes into administration

Apparently RW&c are unaffected by this, but seeing how L&S are their data controllers AND hold their Consumer Credit Licence I don't see how they wont be affected.

No matter should lead to some fun and games

[ed.]

Re: London Scottish Bank goes into administration

Just been told by another about the potential problems they have on DPA No and Credit Licence. Any ideas on where I could search them up for that - never bothered before as it's never mattered.

But without individual DPA coverage and Credit Licence now, until they get one they can't trade really can they?