Interest earned between 9 Oct and 27 May

  • chris watson
  • 23/10/08 31/03/10
  • a depositor
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Posted: Wed, 24/06/2009 - 15:16

I see from the front page message that DAG has "agreed that the matter of claims in respect of interest accrued between 9 October 2008 and 27 May 2009 will be put to the court for direction".

I've probably missed a Forum topic (but cannot find one specifically about it), but what is the timetable in putting this claim to the courts and getting a direction, and is it anticipated that any Interest due will be paid out under DCS (in the case the total amount does not exceed the 50K compensation payment), or not?

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Interest 9 Oct.'08 to 27 May '09

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
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  • Thu, 25/06/2009 - 11:26

If the court rules that interest is payable up to the date when KSFIOM was put into liquidation ( ie 27 May 2009 ) then would the contract interest on fixed term deposits maturing after the 9th Oct. up to 27th May become "capitalised" ? If so, in my case my fixed term deposit would have matured on 30 November 2008 and then the liquidator would presumably give the same % payout on the capitalized interest as on my original principal? It is my understanding ( but I'm open to correction ) that at present depositors only get reimbursement of "non-capitalized" interest if 100% payment on principal plus capitalized interest is achieved - so far this looks highly unlikely.

However, even if I'm correct, on the basis of its track record todate I don't hold out much hope of getting a favourable decision on accrued interest from the IOM courts.


D RAM

  • chris watson
  • 23/10/08 31/03/10
  • a depositor
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  • Fri, 26/06/2009 - 06:46

You write "It is my understanding ( but I'm open to correction ) that at present depositors only get reimbursement of "non-capitalized" interest if 100% payment on principal plus capitalized interest is achieved - so far this looks highly unlikely."

Could you please let it be known the source of your understanding?

I note there is still no word from DST. Given they wish to censor any post that does not relate to "100% return of our monies", I'd have thought they would rush to answer my original post as it is entirely about getting 100% of our funds back with Interest.

I find their silence on this important issue a little bit odd.


Entitlement to Non-capitalized Interest

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
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  • Sun, 28/06/2009 - 14:38

My understanding is from the Mike Simpson teleconferencing, but as I say I'm open to correction.


Rather than how we get paid it...

  • Anonymous
  • Offline
  • Wed, 24/06/2009 - 21:48

....surely the question is the source of it - are you assuming the >50k-ers will be be willing to pay interest to the <50k-ers?


>50k vs <50k

  • KSFIOMCRAP
  • 15/03/09 31/05/09
  • not prepared to answer
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  • Thu, 25/06/2009 - 09:40

Lancara,

you are implying that those who have more than 50k would suffer if those who have less then 50k would get the DCS to pay interest up until May 27 2009 instead of October 9 2008.

This is not correct. First of all KSFIOM is still earning interest on the money which is left in KSFIOM - even after October 9 2008. So payments of interest by KSFIOM to small depositors will not really come out of the pocket of the larger depositors.

As the default date was May 27 2009 all depositors have a claim to get compensated up until this date. If the DCS (because of the current regulation) can only compensate until October 9 2008 then below 50k depositors can still claim the interest directly from the liquidators. In either way they should get it back - its just more complicated and might take longer.

If you have more then 50k in KSFIOM you would also benefit if you can get interest until May 27 2009 paid from the DCS. This is because the 50k which you get from the DCS will not be deducted from your account balance on October 9 2008 but from your account balance on May 27 2009. Your total claim would simply be higher and so would be your claim after receiving the 50k from the DCS.


Lancara

  • chris watson
  • 23/10/08 31/03/10
  • a depositor
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  • Wed, 24/06/2009 - 22:08

No.

The question is "what is the DAG Strategy Team's view on this" given they have made it part of their agenda.


@Chris

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
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  • Wed, 24/06/2009 - 22:21

I believe that the legal people are looking into this


Bellyup

  • chris watson
  • 23/10/08 31/03/10
  • a depositor
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  • Wed, 24/06/2009 - 22:45

No doubt they are, but given KSFIOMCRAP asked a similar question at least a couple of weeks ago, and DAG Strategy Team make it a point of their agenda, it presumably is not too much to ask the question again - given there has been no definitive response (that I have seen) to date.


This is a fair question

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
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  • Thu, 25/06/2009 - 10:15

This is fair question but as we all know to our cost legal teams seem to take their own good time to reposnd to anything.


Interest

  • KSFIOMCRAP
  • 15/03/09 31/05/09
  • not prepared to answer
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  • Wed, 24/06/2009 - 20:03

Hello Chris,

I had opened a forum a few weeks ago (called soemthing like "Interest under the DCS")and got some of the the DAG guys to look into it.

What I know is that this matter has been raised with the "Financial Ombudsman" of the IoM and he has decided to get a ruling by the IoM court but I dont know when that will be.

Obviously it would be easiest to amend the DCS regulations to allow depositors to claim interest until May 27 2009 under the DCS but apparently its not that easy as the DCS has now been triggered already so amendemends that are made now would stricltly speaking not apply of KSFiOM.

I would also be glad to get more insigth from DAG, Mike Simpson and other IoM officials on this but so far there seems to be very little official information out there.


Link to related forum

  • KSFIOMCRAP
  • 15/03/09 31/05/09
  • not prepared to answer
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  • Wed, 24/06/2009 - 20:09

Hi Chris,

here is the link to the forum I mentioned which I opened a few weeks ago:

http://chat.ksfiomdepositors.org/forum-topic/accrued-interest-under-dcs


KSFIOMCRAP

  • chris watson
  • 23/10/08 31/03/10
  • a depositor
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  • Wed, 24/06/2009 - 20:22

Thanks for the forum link. I remember reading it a few weeks ago too, but as far as I am aware there's not been any conclusive answer from DAG Strategy Team.

I would be interested to know, given that it is part of the DAG Strategy Team's agenda, what their view on this is.


CANNOT UNDERSTAND PAYOUTS

  • duke2290
  • 01/11/08 31/05/09
  • a depositor
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  • Thu, 25/06/2009 - 00:27

I am confused by the payout systems.
If at the end of the day, there is a 70% return on savings, this means that i depositors with 50,000 pounds invested claim the 50,000 from the DCS, they will receive 100% of their money back. If a depositor has 70,000 deposited, they will receive either 50,000 under the DCS, or 50,000 being 70% of their deposit under the Liquidation funds. SO this means that Depositor "A" GETS 100% of his money back, and depositor "B" only gets 70% of his money back, is this correct, and if so what are the opinions of the depositors???????????


duke2290

  • chris watson
  • 23/10/08 31/03/10
  • a depositor
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  • Thu, 25/06/2009 - 04:27

With respect, the objective of this forum topic is to understand DAG Strategy Team's view on how the Interest payable, if any, from Oct-May can or will be claimed, and whether any claim will be via DCS.

Without going into debate, the reason depositor A in your scenario gets 100% of his deposit back and depositor B does not is because the IOMG will compensate all depositors up to 50K if a bank goes bust. Any amount above this limit will be paid out via the dividends of a bank's liquidated assets - once the IOMG has recouped the amount already paid out to any individual depositor under DCS.

I'm sure all depositors have a view on this, but the reality has always been that the IOMG will only guarantee to compensate depositors up to a certain statutory limit, which is currently 50K.


50k

  • KSFIOMCRAP
  • 15/03/09 31/05/09
  • not prepared to answer
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  • Thu, 25/06/2009 - 09:25

The depositor who has more than 50000 GBP in KSFIOM can also submit a claim to the DCS for his full deposit.

The DCS will pay him the 50,000 GBP first and if they can recover more from KSFIOM then he might receive more later on when KSFIOM has been liquidated.

So he will not get less then a depositor who had exactly 50,000 invested at KSFIOM.


Incredible.

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
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  • Thu, 25/06/2009 - 07:28

You're the sort of guy that gets knocked down by a train while trying to release a farthing that another clown has super-glued to the tracks.
What is that refran about peanuts, ah!! .. if you pay peanuts you get monkeys...
Now what do monkeys look for ... ah!! peanuts.

Remember our debate? Your precious DCS. And how has it turned out???????????? Oh!! You were wrong were you not?

You are incredible, the grit in the vaseline. Join the program (Full metal jacket style), and I'm not the right wing general.

You have a choice where to place your effort. I accused you of being selfish, you rejected this, you said it was a staging point. Where is the next staging point Chris? Do you think they give a damn about your interest at this point? And hence do you think they will give a damn about the quality of any response. Get the screwdriver out.


follow the tao

  • Ramsey resident
  • 22/10/08 31/05/09
  • unspecified
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  • Thu, 25/06/2009 - 10:27

Stop this abuse - idiot

The guy has a point that I would also like an answer to

If all you are interested in is abusing fellow depositors then get off this site please


follow The Tao

  • chris watson
  • 23/10/08 31/03/10
  • a depositor
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  • Thu, 25/06/2009 - 10:06

DAG Strategy Team has "agreed that the matter of claims in respect of interest accrued between 9 October 2008 and 27 May 2009 will be put to the court for direction".

I'm asking for the timetable in putting this claim to the courts and getting a direction, and if it anticipated that any Interest due will be paid out under DCS (in the case the total amount does not exceed the 50K compensation payment), or not?

Please stay on topic. This has nothing to do with clowns, trains, peanuts, right or wrong, Full Metal Jacket or screwdrivers. It has everything to do with getting back what is owed us.


AGREED

  • KSFIOMCRAP
  • 15/03/09 31/05/09
  • not prepared to answer
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  • Thu, 25/06/2009 - 18:11

I totally agree. We are all frustrated about the KSFIOM horroshow. This forum is to exchange info, help each other and get the horror over with as soon as possible. No need and value added by shouting at each other...

By the way I asked some IoM/FSC officials today and they told me the following:

"We do not yet have a date [for the application to the High Court]. However lawyers have been instructed and this matter will be dealt with over the next month or so - and certainly before the expected first payment date due within three months of the liquidation date of 27 May. Claimants should keep track of www.dcs.im for the latest updates"