Just a quick note to say I started a complaint against ING regarding this issue in December 2009 and have received an offer of compensation from them. The offer came to approx 1% of my deposit (one year FTD) plus £50 inconvenience. I refused this offer and they offered 1.2% of my deposit as compensation. They worked it out initially by assuming you would have taken the highest paying 1year FTD available (6.95%) when they went into administration and then depositing that money into the highest rate 1year FTD (6%) when the funds were returned on 17th November 2008 and making up the differrence. I told them the best I could find was 5.75% so they used that as their guide.

I must admit I was hoping for a bit more than was offered, but ING say the way they calculate the compensation has been OKed by the FOS, so I can't really argue, and it's better than nothing I suppose.

You don’t have to initially accept the first offer; there is no harm writing back to both ING and the FO explaining why you do not believe it adequately reflects your loss and ask them to review the amount being offered. The wording is careful in that you are asking them to review the amount (with the hope that it will be increased) but you have not rejected or turned down the offer leaving the door open for you to still accept if they don’t improve it.

I suspect you may get a small increase in the offer, say an additional £50.

When calculating your loss – you need to compare the difference between the 7.15% available and the market rate available 4.9% when you realised the fixed rate was being rejected; so the loss is therefore 2.25% compounded for the 3 year term. As for inconvenience the amount is often just a nominal amount such as a £100.

When I reviewed the offer I got, it compensated me for all the loss in interest but not all the other costs and inconvenience; but at the end of the day I decided it was a reasonable offer and not worth the time and effort to try and increase it.

I have only today found this thread,

I too have complained to the Financial Ombudsman and have received a letter today from the FOS stating that ING are offering me a goodwill offer in respect of the fixed term deposit accounts that my wife and I opened, and a further sum in respect of any distress and inconvenience. Having read all of the posts on this thread I have not seen any mention of the message that ING posted on the KE website dated 23rd October 2008 at 18.00pm as follows. “Customers with deposits in a Fixed Term Savings accounts can be assured that these rates will be honoured by ING Direct for the remaining term of the accounts”. I have a screenshot of the whole message. In view of this statement by ING I am wondering if I should accept the offer or take the matter to the final stage at the FOS as described in their letter. Although the offer is substantial I feel that it does not fully compensate us for our loss of interest on £60K for three years fixed at 7.15% compared with the alternatives that were available on the day that ING released our money. Any thoughts on this point are welcome.

I also had a positive outcome. I took a different approach and started legal action, they initially contested it saying there was no case to answer and too complex for the small claims system. The court disagreed and set a hearing date; then they offered me an out of court settlement but without admitting liability. As it was a reasonable offer I decided to accept it.

Hi Graeme I have posted my positive response from the Financial Ombudsman on your website as a reply to one unhappy investor, but wondered if you inform everyone who posts here, there has been a positive development that may help them to recover some of their financial loss. Thanks Colin

Hi Just to let everyone know, I received a letter from the Financial Ombudsman this morning, informing me ING Direct have agreed to make a "goodwill offer", that includes a sum for the loss of interest on the accounts the website showed I had opened, and a further sum of £100 in respect of any "distress and inconvenience"

I have received a letter of updated information from the Financial Ombudsman this morning.He states ING Direct initially suggested the F.O. "did not have the power to consider these complaints, as they arose out of Kaupthing Singer and Friedlander being placed in administration". Further to meetings with ING Direct, the F.O. "confirmed that for events that occurred on or after 8 October, consumers should have directed their complaints towards ING Direct N.V.," and that he " saw no reason why this service would be unable to investigate concerns consumers have highlighted". The F.O. went on to say complaints directed to the wrong bank have been redirected "we have directed the complaint to the correct bank on the consumers behalf to avoid further delays". The F.O. finishes by stating " Now it has been agreed that ING Direct N.V. will be assisting this service in resolving these complaints, we are now in a position to begin considering the merits of each complaint on its own particular merits.We will inform you, in due course, of the outcome of the investigation and any redress that is being made to resolve the matter. At this time I am not able to be more precise as to any outcomes as each will depend on the circumstances particular to each investment". Hope this helps, and I will post the final outcome when received from the F. O.

Colin

This appears to be a very strange arrangement, between ING, HMG and Kaupthing in administration. HMG transferred UK savers funds from Kaupthing to ING, which in a normal world, would then make ING solely responsible for all the transferred accounts, not so it seems. ING did post regular updates on the Kaupthing website, supposedly keeping their inherited investors up to date, but they carefully or intentionally failed to post, that they would not honour fixed term accounts after a certain date, even although the products were still being advertised for almost a full month later. This meant investors were being deceived, in that had they known, they would have invested their funds elsewhere at the available higher rates of interest at that time. Kaupthing in administration were supposedly responsible for the Kaupthing website, but they also failed to inform savers honestly. I have kept the email correspondences from Kaupthing in administration, where they blamed from being unable to access their I.T. systems to a computer error, for not updating the information regarding accounts on their website. My grievance is they merely had to post an update on their website, as ING did on many occasions, stating that the advertised products were no longer unavailable.(if this was to be their intention!). I have sent all the relevant information to the Financial Ombudsman, and will post the outcome, when it becomes available.

If ING are not responsible for this, it implies that Kaupthing (in administration) could be liable. Has anyone contacted them with a claim? Any views on whether such a claim would be covered by the FSCS.

There has still been nothing further from the Ombudsman, since my complaint in December 2008. The Ombudsman did say it could take some time to judge the case, once he had all the facts in place, as they are understandbly busy at the present time. I will post the Ombudsman's decision as soon as it is available to me. I would be happy to contact anybody personally via email, with the outcome, if they would prefer.

Colin

I wrote to the Financial Ombudsman Service on 18 December 2008. I complained that ING Direct had misled me into believing that I could operate my Kaupthing Edge account normally. I placed funds in a fixed rate bond, and was never informed that my transaction had been reversed. I only discovered it when checking my account. I received a reply from the Ombudsman on 19 January 2009, stating "The matter you have raised does not appear to be something we are able to look into." Where do we go from here?

Just for information. I was talking to a friend of mine earlier in the week who happens to be a judge. Her view on this type of thing with banks are to take them to the small claims court since banks very rarely bother to turn up and thus lose ... and it would appear that there is no love lost between the judiciary and financial organisations.

I wrote a letter of complaint to both ING Direct and Kaupthing administrators. Ing Direct did not reply, but after I called, they denied any responsibilty for accounts opened after 8/10/2008, albeit they used the Kaupthing website to post so called accurate updates. Kaupthing Edge Admin. did send a final response, blaming an "IT problem" that took five weeks to rectify. I then contacted Kaupthing on several occasions via the secure messaging system on their website, requesting clarification as to which organisation processed transactions (both fresh funds in and existing funds out) of customers accounts, and most importantly who was responsible for the information on the Kaupthing Edge website after the 8th October 2008. Kaupthing Edge Admin. said although the funds were held by ING Direct, they were servicing the website, but had not removed fixed term products due to a COMPUTER ERROR. I do not accept the stories from either Kaupthing Edge or ING Direct, because

1/ If Kaupthing serviced the website, how did ING Direct manage to post regular updates keeping customers informed

2/ Why did either of them not inform customers certain products were no longer available (they only had to post a message)

3/ Why did it take almost five weeks to remove the "DISCONTINUED" products

4/ Why does an IT problem become a computer error

I recently opened an account with Anglo Irish, where they clearly stated interest rates had been lowered, but applications sent within time limits, would be honoured at the higher rate. I think ING Direct and Kaupthing Admin. should consult Anglo Irish with a view to learning how to be upfront with their customers.

I have forwarded my complaint to the Ombudsman, with the final responses and all the secure messages from Kaupthing Admin. They have informed me they have contacted Kaupthing Edge, for their version of events, and will judge the case when they are in possession of all the facts.( on reading the literature they sent,I feel it offers more than a glimmer of hope) They did say it could take some time , as they are very busy at the present time. I will keep everyone posted.

Summary Details of ING Defence To My Claim1) ING Direct is Not The Correct Party.2) If which is denied, ING Direct is the correct Defendant .. assumed intended entity is ING Direct NV - incorporated in the Netherlands.3) Kaupthing Edge in administration liabilities to fixed term deposits transferred to ING Direct NV at 12.15pm on 8/10/08.4) ING Direct NV only liable to pay interest to persons who applied for |Kauphthing Edge FTD accounts before 12.15pm on 8/10/08; has no liability to the Claimant who applied after this date.5)Particulars of Claim not admitted since they relate to matters beyond the knowledge of ING Direct NV, save that it is admitted that the Defendant has not contacted the Claimant directly in response to the Claimant's correspondence dated 19/11/08.6) Believed administrators wrote to Claimant on 3/12/08 in response to letter of complaint from Claimant. It is averred that administrators sent an email on 11/11/08 to customers who attempted to open FTD accounts after 8/10/08. Aforesaid email advises customers unfortunately due to IT systems (the administrators) were unable to disable apparent ability to apply for fixed term deposit accounts.7) Proof of the interest claimed required and in any event the Defendant denies any liability to the Claimant for the sums claimed.

Just wondering if any one has made any progress. I did write to the Ombudsman but have been told I need to give ING 8 weeks to respond.I also have received a defence to the claim I made in the court. I will post details of this later in the week - it should make you smile. I have yet to decide how to respond.They even underpaid the postage on the defence they sent me ! which is typical of the whole shambles.