Dear Nxxxxxxxxx,
Many thanks for taking the time this morning to discuss my concerns regarding the Isle of Man (IoM) and my desire to place my savings within the United Kingdom. As mentioned I have first-hand experience with a bank collapse on the IoM and it’s so called Depositors Compensation Scheme (DCS). In my case I had nearly £XXX,XXX on deposit with the Derbyshire Building Society IoM, which failed on October 6th 2008 (then known as KSF IoM Ltd). It took nearly a year for the DCS to pay out its £50k compensation and the rest of the money will be returned to me through a liquidation process which won’t be concluded until 2017 nearly 10 years after the collapse of the bank. In real terms, taking into account depreciation and lost interest, I would estimate that up 50% of my original deposit will have been lost.
Therefore, I am surprised that a reputable bank such as Lloyds TSB is still promoting offshore banking in the IoM without making its customers aware of the significant risks involved, which for me were all too real. I would invite you to look at the following website regarding the IoM: –
In July of this year the IoM Government’s (Tynwald) Select Committee said the following about its DCS scheme:
“In the event there was another bank failure while KSF (IoM) is still ‘live’ or in the future any systemic or major bank in default, it is highly unlikely that there would be sufficient funds to compensate depositors to the full value of the threshold limits.”
What an incredible admission!!
Therefore, I am not keen to place any further funds on the IoM (neither should anybody else for that matter) and would appreciate your support in opening an equivalent savings account in the United Kingdom. It has taken me 15 years of hard work in the UAE to save this money so security and a reliable compensation scheme are of the utmost importance.
I look forward to hearing from you.
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