Our Stories

These are the stories of real people who face financial ruin, or at best considerable hardship, as a result of the collapse of Kaupthing, Singer and Friedlander (IoM). These people deposited money with a reputable and highly rated bank for safe keeping and to earn interest. They are not stock market investors who know they can lose when they invest but prudent savers. Most (86%) are British citizens and most (77%) are over 45. 64% of depositors have more than £50,000 at risk. Some of the stories are harrowing; some demonstrate the British "stiff upper lip". Many are understandably angry. Please read them. We welcome your support.

Letter to MP

My story is similar to many others. My wife and I were depositors with Derbyshire IOM in a safe and steady base rate tracker account, not greedy, not reckless. We are UK residents and have always declared and paid tax on the interest (no, Mr. Darling, not a tax evader).
As a UK tax payer, my money has been used in part, to fund bail outs of Kaupthing Edge, IceSave and other banks (apart from the illegal sequestration by UK treasury of my deposit with KSF). I am 76, my wife is 80, our deposit of £290,000 was the main source of income and our insurance against ill health or need for care in our remaining years.
As urged by the action group, I wrote to my MP, Mr. Mark Oaten. I needn't have bothered, I got an anodyne reply (but prompt) which told me nothing that I didn't know and singularly omitted to say that he would take any action or make any representations to assist me, my wife and all other victims of this sorry affair.
Like all others, I await the hearing on 27th November, and I thank all organisers and contributors to the KSFIOM depositors' action group. I can contribute modestly to the costs of the group.

Retirement Plans

Having spent almost 30 years in Saudi Arabia I have been able to deposit a fair amount (GBP400K) in the Derbyshire (now Kaupthing Bank) from both earnings and maturing mortgage life insurance policies. Additionally a further GBP52K "resides" in Kaupthing Edge and $8K in a Multi Currency S&F account. Now at 67 years of age it is time to retire to Spain (My wife is Spanish). UK rules allowed me to contibute to a company pension fund for 10 of those 30 years. For the rest, apart from Class 3 NHI contributions I have had to make my own pension arrangements and assumed Derbyshire was a safe haven to provide interest income and/or cashing out the deposits as dictated by our needs during our "golden years".
Though residing in a tax free environment we have expended large amounts within the UK via our 5 children educated in the UK and have kept a house there for their use and contributed with council taxes for many years.
My wife and I await with great anxiety to be informed how the situation will be resolved. Can we expect a comfortable retirement provided by the funds now "held" by Kaupthing or just a paltry "pay out" if anything at all?
What a way to end my career!!

My wife and I are UK Expat,

My wife and I are UK Expat, aged 82 & 80.

Worked 39 years in UK for 2 major companies.

Retired early 1986 ( health - heart).Occupational pension & DHSS pension- both declared as income and taxed in Spain.

2 accounts with DO> KSFIOM.
a) £200k + 14k interest - 1 Year Bond, taken out end Nov '07 immediately before DO transfer to KSF.
b) £24k - Instant acces tracker A/C.
Interest from Bond transferred annually to Tracker A/C and available to supplement pensions.
Initially opted to pay withholding tax at source.

Current position- Income of £12k per annum from pensions.
£30k Premium Bonds, now being used to supplement pensions, and own apartment. Short term can exist on this,
but because of ages, loss of "rainy day" nest egg is crucial to future.

Shattered KSF (IOM) Depositor from the Seychelles Islands!

My wife and I are pensionsers from the Seychelles Islands who have invested our life-time savings in
Derbyshire -Isle of Man which then became KSF (IOM).

We had invested a 6 -figure sum (joint account) , which was going to go towards our retirement and the 'Golden Years' but now to our shattering dismay and disgust we find ourselves in dire straits - and finding it difficult to make ends meet.

Seychelles is undergoing an Economic Crisis whereby cost of living has gone up by 100 % over the past few months while salaries and social security pensions have increased by 5 %.

We are DESPERATE !!!!!!!!!!!!!!!

SOS in Seychelles !!!!!!!!!!!!!!!!!

My Story

I am 23 (the only vote in the under 25 category in the age poll so far) and have lived in the Isle of Man for over ten years now.
I decided to save with KSFIoM solely because of their "good" rates. I had over £20000 with them, which is a result of my savings after graduating - holding a fulltime job and working hard on freelance programming projects.
I know my £20,000 is considered to be "safe" as it falls under the £50,000 limit but that is little consolation to me as I am buying an apartment, due to be completed in February 2009. If I do not get that back in time, I will have to consider borrowing more (if that's possible) and lose potentially more!

My Story

I am an Irish citizen, been living in the UK for numerous years (& paying taxes),as I am married to someone in the RAF. His job took us abroad mid Sept just gone - so we moved ALL our savings to KSFIOM as a result of this move. Believing the guarantees gien by KSF, we thought nothing of putting our 6 figure sum in my sole name (Even BIGGER mistake). I spent the last few years doing a 4 hour daily commute to work to earn the majority of this money, as my husbands job working for the British Government did not permit us to move nearer to my work. Now we are in another country with no founds to go home to the UK or IRL for Christmas and I am out of work!! Needless to say, based on what I have written and the way Mr. Darling is (not) handling this situation and his ignorant comments recently, I find it difficult to have any faith in the UK government.
Everyone on this site has a story and I won't bore you with anymore details, all I can say is that I try to remain hopeful of a positve outcome (I have gone through all the other emotions!!) and would like to thank everyone responsible for putting and keeping this site going.


I have only just found out

I have only just found out through chance in a conversation with a friend of mine in England that Isle of Man bank accounts are not covered by the UK guarantee. He then said there had been something in the news about a particular bank and when I gave the name of my bank, Kaupthing, Singer & Friedlander, he said this was the bank that had been in the news and I'd better look into it. So I went to the internet and wow! I was completely devastated to find out what has happened. I'm a UK citizen living in Australia and have/had some money in KFS to use when I visit England and Europe. For me this money is my link to people with whom I have deep connections and I had planned that I could visit every couple of years for the rest of my life (I'm in my 60's). With a very small income here and the withering away of money that I have in Australia through the financial meltdown, I had thought that at least my money in the UK/ Isle of Man was safe and that as long as I could get the airfare together, I would have funds in the UK when I got there. Now I feel this all slipping away from me, I just feel terrible. The other thing I feel narked about is, that I have always declared this money here and paid tax on it, so I have never treated The Isle of Man as a "tax haven".

Frustrations Experienced in Setting Up an Offshore Account.

Frustrations Experienced in Setting Up an Offshore Account and other Bank Stories

I thought that it might benefit some of those who are in doubt about the requirement to be resident in the UK to open a savings account in Great Britain to recount my recent frustrating experiences with the British banking system. It’s a story of penny pinching and gross incompetence. In July 2008 my mother in law was moved into assisted living in Manchester. The cost of her care is 600 pounds a month. These costs were intended to be met by interest on 60,000 pounds held in KSFIOM until October 8th when the account was frozen. The 60,000 pounds came from the sale of my mother in law’s apartment in Didsbury. What follows is an account of the steps I went through to establish what ought to have been a straightforward banking transaction. We have lived in Washington DC. Since July 1988.

  • In early July 72,000 pounds was transferred to my Lloyds TSB in Bristol following the sale of the Didsbury apartment. In August I transferred 10,000 pounds from the account to my account in Washington to pay 15% Capital Gains Tax in the USA. A total of $16.000 to the Federal Government and $4,000 to the District of Columbia. So no tax avoidance here in response to the recent ‘IOM Tax Haven’ comments from Alistair Darling.

  • Lloyds TSB charged me 35 pounds ($70.00) for the privilege and for making a few computer keystrokes. They added insult to injury by paying a paltry 3.5 pounds of interest for the time they had the 72,000 pounds. 42 days in all.

-All communications with Lloyds TSB have to be via surface mail. This resulted in days of delay while the pound weakened against the dollar – more lost money. Lloyds left voicemails on an out of date telephone number to explain problems with the CHAPS transfer. I found out 3 days later when I called to get the status – more lost time.

  • In the meantime I had applied to Bradford and Bingley for a savings account and was advised that as I didn’t have a UK address the only option was to open an on-line offshore account. They required passport and utility bill to be notarized and mailed to them. After two weeks they came back requiring me to re-apply again this time on their website as I was applying for an on-line account. Why the heck did they miss this the first time? Then in August I was advised that my account couldn’t be processed, as they needed a second proof of address in hard copy. No apologies were offered and I gave up on them.

  • In early August I approached Kaupthing Edge(UK) and from there was directed to KSFIOM as I had no UK address. They required hard copy proof of our US address and identity. They set up a a Kaupthing Edge – IOM account within two weeks. – quite efficient but then they decided that it was an ‘inappropriate account’. And asked me to re-apply again for a Platinum Offshore Access Account, which I did, sending notarized hard copies. I had to wait four weeks before I received a letter confirming the establishment of the new account. However in susequent displays of incompetence the funds were never transferred from the ‘old account’ into the new one and the monthly transfer of 600 pounds was never initiated. A waste of three months of effort right up until October 8 and a loss of 60k pounds.

I’ve pretty much had it with banks, they charge for services at the slightest pretext and offer no crumb of comfort or offer of compensation when they make mistakes. I sent letters of complaint to Lloyds TSB, Bradford and Bingley and Kaupthing Edge not a peep out of these guys beyond a ‘we’re looking into it’ yet if you miss any payments to them they’re all over you. What a bunch of parasites.

November 2008

My 2 Stories

I hope i'm putting this in the right place.
I have 2 accounts, one personal and one corporate. I am a USA Citizen living and working in Japan for the past years. I recieve salary in Japan and all taxes are taken out. I am exempt from taxation in USA due to my domocile being in JPN. I have JPN wife and 3yr old and 3-day-old as of today. I file taxes in USA and my account in KSFIOM is always reported on that.

I've not lost my home or anything like that. My business account at KSFIOM will take a big hit for me though and i think the business may end as a result of it.
Here are my two simple stories.

  1. My Personal Account had only US$17,000 in it at the time. The money was on the way to the USA where it was to help deal with my father's illness (Cancerous Brain tumor, surgery, cancer treatments, Congestive heart failure, only 1 eye that now doesn't work well, a life of war and other injuries that leave him in a 100%++ disabled condition (yes you can be more than 100% disabled according to the gov).
    Anyway, the money was for that and to help my young sister who is going to college next year. it was just sitting there waiting for me to have time to transfer it when the bank died.
    I will be covered for this account by the scheme (although i hear there is no actual money for making this compensation so it may drag out for years)!!

  2. The business account is for a company in BVI which had another person as the registered director. This company bought from one country and sold to another and held the various curriencies in KSFIOM. It is a good sales point that you can receive various local curriencies. This account had US$55,000 in it and US$10,000 sent out that never arrived, and unfortunately a US$22,000 payment someone made to the account but never posted. We hoped the income would bounce back since it left the client's account on the 8th itself. But alas it seems they will suck it into the black hole of KSFIOM. So this company account will be at $87,000 total.

I was extremely disappointed the non-individual accounts were not covered equally to the 50k GBP. Even if it were and i would recover all lost, i would still be here helping and supporting everyone. The huge lost to the company will likely break us. It caused trouble with clients, we couldn't pay people, we can't order things, we are totally stuffed up. It is a small amount to many, but it is enough to me that the damage will be very clear.

My hope and goal is #1 100% recovery for all depositors & #2 that individual and non-individuals (as well as UK citizens and non UK citizens) are treated equally in whatever final process.

I started from day one emailing news, the FSC and Treasury, looking up contact for Tynwald members, calling everywhere, and doing the same through UK and also to news in the USA. I pushed that until the main guys asked us to stop and change focus. I'd like to see more organization in the Small Business group and we could work to acheive the equal compensation for our group.

Hope to hear from some folks on that.
thanks for reading

Hope we all get through this...

Reading the stories on this website just makes me wonder how our world can turn around without warning. One day we were just fine and the next day - we lost everything.

We had suffered some personal loss prior to this bank collapse and things just seemed to get worse each day.

Reading your stories makes me angry at the people who have done this to all of us.

I really hope all of us get through this. There is nothing a lot of us can do but we have people who are working hard for us to help us - complete strangers brought together by a common goal.

I feel for people who have lost a lot more than I have and I am not just talking about the money. I feel for everyone here who have worked hard as we did and saved for the future.

It breaks my heart reading all these stories.

People we know have turned their backs on us, sneered at this whole mess, blamed us and think this whole mess was due to us having too much money and greed.

This challenge has taught me one thing - I know who I can rely on.

One consolation I found in all this mess is that I have discovered good people here in this website.

Good people who are willing to put in their time and money into this fight for what is rightfully ours.

Good decent people whose name I do not even know.

Good decent people I have never met and will probably never meet. Amazing isn't it?

For the sake of all of us decent people here - I truly hope we get through this.

WW - Japan

Left with nothing!

I have worked in the Middle East for the past 11 years and stand to lose my entire life savings of £160,000. I met my (British) husband in the Middle East and we married earlier this year. Our plan was to start a family as soon as possible – at the ripe old age of 41, my biological clock is ticking loudly! Our plan was that I should be a stay-at-home mother for a couple of years, with my nest egg supplementing our income (not a very extravagant plan as I have worked all my adult life!).

Since that nest egg has now been stolen from us, we can no longer afford to bring a child into the world. Even if we did, I can no longer afford to stop working. Therefore, I am denied the pleasure of rearing my own child! Both my husband and I feel that the right to become parents has also been stolen from us.

For the past 11 years I have been separated geographically from family and friends in an effort to achieve financial security. With hindsight, a more lucrative plan would have been to become a single-mother in the UK while availing of every possible benefit offered by the UK government!

My original savings account was with the Derbyshire (opened in 2003). My savings were held in a low interest, instant access account. I have never gambled with my savings nor placed my money at risk – preferring instead to take the “safe” option!! Neither my husband nor I are wealthy. We have worked hard for every penny that we own(ed?). We both worked in the UK before moving to the Middle East and, while there, paid all taxes, etc. Actually, my husband moved from the UK due to a lack of work during the last recession at the end of the 1980s!

Having read the other stories submitted, my sincere sympathy goes to all those who are suffering. I also want to say a heartfelt “thank you” to those who are working tirelessly on our behalf. The British Government should be thoroughly ashamed for the torment it is causing. How dare we be penalized for being decent people attempting to achieve financial security and a better future for our families?

Ordinary people

We are ordinary people, not tax dodgers or wealthy!
I work for a large accountancy firm (not PWC or EY may I add). 12 months ago, I was really luck to be offered a fabulous opportunity to take up secondment in my firm in Melbourne Australia.
It was a great opportunity and with 3 young boys (plus my husband), we thought where could be better to bring up young children than a place like Australia, with the opportunity of the outdoor lifestyle and sport served up morning, noon and night!
We put our house up for sale, and after several months, Xmas Eve 2007, 20 days before we left Blighty, we had a cash offer!! It was unbelievable as the housing market had already started to fail, and many houses were taking months and months to sell. It was a memorable Xmas Eve! We didn't get our asking price, thinking that the equity from the sale we could invest carefully, until we purchased our next house (either in Australia or UK if we returned).
Some months, after our arrival in Australia, the house sale finally went through and the excess funds were held in our current account in the UK. We needed a savings account, but were told 'no' without a UK address.
I searched on the internet and saw the deposit account with KSF in IOM. Perfect, instant access and monthly interest. Nothing flash, in-fact I think at the time, other organisations were offering higher rates, but I wanted on-line access from Australia and the interest paid monthly, to cover the rental in our new home, as my husband did not have a job when we moved.
After 8 months in Aus, we decided on a holiday to the gold coast, with the children to visit the theme parks. When we returned to Melbourne on the 8th October, I thought I'll login to the KSF account and check everything was OK, with all the terrible news we heard whilst we were on holiday with HBOS and Brad & Bingley.
I couldn't login! Searched the internet, BANG! The news hit us smack in the face. Since then, it's been difficult to sleep and I really do feel like I've been robbed, I called the cops and they said, 'Oh that's a shame, nothing we can do for you'.
My mind often wonders and I think that it doesn't seem real or that any decent government or society would do this to good, honest people. The past 25years of my life, I lived and worked in the UK, paid my taxes (on-time) and never put a foot out of place, and now I have left the country, for less than 1 year, I'm abandoned, and for doing the right thing, saving my money in a deposit account.
I realise that I am more fortunate than others, I still have my family and my health, and both my husband and have a job, so the rent gets paid, and for that I am grateful. But everything else has been taken from me, by a thief who stole our house in the middle of the night, for now I do not have the capital to buy another house or pay for a deposit, and provide a stable permanent home for my children.
Why, oh why, where did we go wrong?!?


My World Collapsed
On 4 October 2008 my wife and I returned to the UK after 41years overseas to retire and so that we could be closer to our family. We had decided to spend a few days with my son in London for a few days. They had prepared some wonderful welcoming signs on their garden gate and in their house. It was a wonderful day.
On 6 October my wife decided to post a letter into a post box just across the road. She was gone for 15/20 minutes when my daughter-in-law thought that she would go and see where she was. Seconds later I heard my name screeched out. I dashed outside to find my wife lying on her back in the road with her head in blood. She was conscious but could not tell the paramedic what day it was. Twenty minutes later she was lifted into the ambulance and in a further twenty minutes we were at the county hospital. X-rays and scans were taken and close to mid-night she was released. I was most upset as you can imagine, but the degree of emotion then and which still troubles me I cannot explain.
She does not remember what happened, but we can only assume that she was struck by the wing mirror on a passing motor car resulting in a broken collar bone, cut on the head and lots of bruises. The body shock is the most troubling aspect of the accident and she has endured lots of pain and discomfort in the lower body. Fortunately we have seen two osteopaths who have done a great job in manipulating muscles and repositioning the coccyx.
Well, if the road accident on the Monday was not enough four days later I came to hear that on 8 October Kaupthing, Singer and Friedlander in the Isle of Man had been closed and placed in the hands of a liquidator. How I survived that week I don’t know. Over the last year I had been channelling funds into the bank in order to purchase a house upon our return to the UK from the sale of property and stocks and shares and there was £500,000 of mine in the bank at closure. The hard earned cash working in some quite extreme mining conditions suddenly was not available. My dream of buying and setting up a house and helping my sons out with their mortgages was suddenly violated and ripped apart. My world collapsed! The shock and despair was indescribable. As you can imagine sleep over the last few weeks has been greatly upset not only because my wife was not sleeping, but how, I continually asked myself, how I could have been so naive to rely upon a bank to keep my savings safe. I had been with the Derbyshire for many years and assumed that the take-over by KSF would be sound. I feel very badly let down and robbed.

my story.

I am a UK citizen who sold up and decide to take a long holiday with my pregnant wife and 2 year old. The plan was to come back, buy a business, have our baby and live happily ever after.

We have 42k in Kaupthing. We now have no money whatsoever. We can not leave (we are in S. America at the moment). My wifes pregnancy is progressing and soon she will not be able to fly anyway.

We are in a real state. It is impossible for me to find work. i dont speak the language and the pay is so low it wouldn´t help our plight (10 pounds per day?)

We will not get help from any governments out here. We need "SOME" money soon to stay afloat.

I already owe a fair bit to people down here. It´s a gun culture so i am VERY concerned as to how and when i will pay them back.

All i did was search the internet for the best interest available. As far as i was aware i had clicked on the UK site. I did not realise that the IoM and the UK branches were seperate. This should have been made clearer. I did not need an ofshore account.

Now our "holiday" is turning into the worst nightmare you can imagine. I wont describe the places where we have to stay now!

We have no family in the UK to help us out financially which it seems is expected by this government.

Good luck everyone!

My Story

I am 40, live in Northamptonshire and own a small business with 9 employees. I re-mortgaged my house to invest in expanding the business and along with my savings and tax money deposited all my funds with KSF IoM a sum in excess of £400,000.
I therefore have a large mortgage to re-pay with no funds to show for it and a business that to date has been succesful but now has had all it's funds removed from it.
Using KSF was based simply on the interest rate they were providing and not because of it's location in the IoM. I also understood they had no exposure to 'Sub prime loans' so gained some comfort from that.
As for the future, it's fairly bleak. The survival of the business rests on these funds and the livihoods of myself and 9 other families as well.
I'm very disapppointed to see the UK Government trying to portray KSF IoM depositors as wealthy individuals who use the IoM as a tax haven and their funds are of no comsequence to UK economy. This has a very real impact on many UK residents, UK citizens and UK tax payers.

thank you

My wife and I have £279,000 at stake. We are just ordinary teachers in international schools and thought we were one year from retirement - now we will have to work another three or four years. We don't have much else. We will pay our two kids through university. We have saved all our lives - no flash cars, no flash clothes, always careful. An entire product of two working lives stolen. Easy looking in the rear view mirror saying 'you put it all in one bank!!' I have to spend the rest of my life looking at my wife knowing that is what she is thinking. The British govenment creates the crisis using anti-terorist legislation and then tries to walk away - is their really no morality left in government any more? A few good members of parliament who still see constituents as human beings who are trying to live real lives.
Why am I writing this? To say thank you to everyone who is hekping run this site. I go through periods when i feel physically sick with worry and sink into a depression. I Skype my wife and she is in tears and distraught. Only reading this site and finding there are people who are in the same (sinking?) boat and smart people who really believe there may be a decent outcome gets me throuh the hard times.
Is the world really so cut throat that governments can rob an ordinary person of their life savings and the savings of their parents' life time of work and nothing is done and nobody sees that it is wrong.
Thanks for being there.

My story

I am a UK resident and taxpayer. I have invested a considerable sum of money (well over £50,000) to generate interest to pay the fees for my 92 year old mother's residential care home (as the government do not pay for this, despite the fact that she also has worked hard all her life and paid taxes).

Obviously now this money has to all intents and purposes disappeared I am having to fund this from a different source. Pretty soon this source will dry up and I have no idea what I am meant to do at this point. My mother has no idea of this situation, thank goodness. The lack of information and/or misinformation from my financial adviser - who told me that I was fully protected - and everyone else involved has also been very worrying.

To be honest I am terrified at the possibility that this money will never be returned. I am not really allowing myself to think of this as something that could happen as it is really too dreadful to countenance. It truly would have been better to put this money under the mattress.

I feel very let down by the Government, the FSA and the financial service industry and hope that we can do something by this forum to get our money back quickly - just one person suffering financial hardship because of this mess is one too many.

lost £800,000

My husband left me suddenly after 16 years and I wonder how I got through the stress and misery of the 2 year divorce. Now only one year later, this happens.
Having never been involved in investing money, I took the advice from my Bank to place the money that was to be income for my son and me, for life.
The past few weeks have been terrible and I thank those involved in setting up this website - so we dont feel too alone.
We can only hope that one day we may all get together for a 'party' should we have some good news.

Hi There!

Sorry to hear you are going through this Misery too.. I am in a very similar situation also I have just been Divorced after 21 yrs and invested my Money ...was seduced by the interest rate... It truly is a Night mare!! anytime you want to talk please feel free to chat on the internal site or via email... We are fortunate in this dreadful situation that we have such knowledgable people running the Show... Hold On Tight we will get there if we stick together!!

Kind Regards Aurora (Dawn)

In the same boat...

...or should that be "sinking ship"? Having read your story, sweepy - I can really understand how you're feeling, as the same thing happened to me - with just a few variations. 21 yrs of marriage before being cut adrift, the same 2yr battle for a fair settlement. Emerged from the battle totally shellshocked and incapable of making any astute financial decisions - took the advice of the financial wiseguys and, four months later, saw the whole lot (GBP350K) vanish without trace. Talk about being kicked when you're down! However, the one saving grace in this whole sorry mess is that it's brought us to this place where a group of amazing people are fighting tirelessly on our behalf for justice. That alone restores my faith in humanity!

Lack of Communication

I am based in New Zealand and literally only found out about the issues when I tried to log in to my account a few hours ago. It would be fair to say that I was a bit more than schocked.
Not sure what I can really do apart from hound the liquidator and get friends in the UK to do what they can for me.

Definite lack of communication

Same with us, we only found out on Wed. too, when our delayed Weekly Telegraphs finally arrived.
Never imagined Icelandic mess was something that was relevant to us!
Anyway have written to Conservative Party & LibDems plus what would be our MP if we were still in UK.
We can only keep our fingers crossed.

It could be worse, but doesn't feel like it!

The last weeks have been a nightmare for us all. Our story starts when both my parents died within 3 months of each other in 2006. My husband and I, always cautious by nature and never in debt, decided that life was too short not to follow our dreams, so we sold our house (good timing looking at today's market) and put our life savings together with my inheritance into KSF IOM.
We moved to Austria and are building a guesthouse in the Alps. We didn't put all our money into an Austrian bank account as we had already lost over £100,000 due to the weakening pound against the euro, between buying our land and moving abroad, and we could only get 2.5% interest here. We needed our money to work for us whilst we were building and didn't have an income.
The house is beautiful and nearly finished. We do, however, have 2 more payments to make to the builders. We asked for our money to be transferred on 6th October, blissfully unaware that KSF had a problem. Now we know!! Our request was never processed, although it was authorised that same morning.
We are amongst the lucky ones. We have a roof over our heads and can finish our project. However, the only way we can now finish it is with a huge bank loan. We will be in more debt than we have ever been in our entire lives.
This is not what my parents worked hard all their lives for - going without so their only daughter could live the life they wanted for her; not what we worked for - saving rather than spending money we didn't have.
Were we greedy to go offshore? No. We were doing the sensible thing. KSF was a solvent bank with liquid assets. We were not breaking the law or avoiding tax. We know we have been innocent victims of the global economic crisis, but I still just want to scream IT ISN'T FAIR, GIVE US BACK OUR MONEY!!!!!!!!!
....and finally, a heartfelt thank you to all those working so tirelessly for us all. I'm trying to do my bit, but it seems very insignificant compared to some.

Should I Laugh or Cry

Last week we received the French Tax Bill which consisted of tax and social charges(12%) applied to savings income. We called at the local tax office and explained our position. The answer was 'if you don't pay we will send a couple of reminders adding 15% penalty each time. We will then freeze your bank account until we recover what is owed to us'
Good Luck to them, wish I could do the same.
I have sent emails to several MP's asking for an urgent reply as the whether I will get any assistance with housing if I return to UK to try and find work, have obviously pointed out I am a pensioner.

Derbyshire IoM/KFS

In good faith I followed the recomendation of the Derbyshire who have always been well respected as a Building Society. They should perhaps be made to take some responsibilty for the debacle, for after all they were paid by KFS, no doubt a huge amount of money, for the business.

In addition there has been no formal communication from the provisional liquidator to depositors other than through the KFS web site. The IoM government webs site has provided more information than the liquidator. I only found out about the problems of KFS when I went into their web site prior to writing to them to transfer the funds to my cheque account held with another well respected bank.

The publicity indictes that the provisional liquidator has secured a considerable amount of money and I feel that he should start to distribute this to depositors. I would be quite happy at this stage to receive even 5p or 10p in the pound as it would slightly mitigate the problems that I have.

The IoM government has the depositors compensation scheme, which to their credit. they have favourably revised to cover many KFS depositors. They won't pay out until KFS are declared in "default". I would suggest that they pay out the R50 000 now and bear the brunt of claiming the money back later.

The funds that I have with KFS were for a rainy day or other emergency, which has now arisen.

My wife and I are returning back to the UK after 35 years abroad to be near to my mother in law who is 91 years old and living alone.
The funds with KFS we intend(ed) to use a part payment on a modest house in the UK to top up such monies as we will take with us in December. In addition to the problems we have been caused in this area, the currency in the country in which I reside has weakened by almost 27% against the Pound.

All our carefully worked out plans are being revised almost on a daily basis, especially as our retirement planning was based on living where we are at present not on the UK cost of living.

Perhaps, when I get to the UK in December, and become a voter again, I can bring some pressure to bear on politicians. From abroad one has very little hope of getting results when the government won't even increase pensions to people living in certain commonwealth countries on grounds that it would be too expensive. Now that we will be living in the UK again, it will cost far more with NHS and other benefits!

Regards to all and keep up the good work.



Well today my wife called me down from the computer and asked me what I was doing and why I wasn't looking after baby.
My reply was,when I am not working I am spending every spare moment trying to get my money back.
Today I vowed that I would pursue bankers and politicians -with or without a result to get answers.
This is the largest criminal action ( in addition to my accountant who failed on numerous occasions to meet tax deadlines) that has ever fallen on me.

Over 20 years of my life

I have spent over the last 20 years of my life living in places I'd rather not!! The reason? My husbands industry, the manufacture of clothing in the UK, went down the pan in the 80's, so in order to continue to be able to live and support ourselves we went to live in the Far East. In doing so any pensions from his previous work were frozen and we were told on good financial authority - SAVE- SAVE & keep saving for your own retirement fund. This we dilligently did, not living in luxury accomodation, not taking luxury 5 star holidays, putting up with only being able to visit UK once possibly twice each year and being away from family and friends and all things familiar. It has taken those 20 years to do it , my husband didn't earn a fabulous salary, in fact, his first salary was less than he was earning in UK at the time we left. We always said it was a sacrifice we had to make in order to have sufficient funds to set up our own retirement fund when we returned to the UK. Right now we are within less than 2 years of doing just that - BUT we have nothing to retire on. Those 20 years savings were depositied in KSF (IOM) - it made simple financial sense to put it in a bank with a high rating, a parental guarantee and a higher intersest rate, rather than in a bond or fund "which may go down as well as up" At this stage in our lives we were not out to "gamble " our money on the stockmarket we wanted it to be safe - hence a bank. For all the reasons already posted we all know why this could NOT be my local TSB!! We don't have enough working years to recover fom this - we are no longer
young enough to do that.

(If any of this is useable - please do so - I am happy to have my name published)

Over 20 years of our lives

We understand and sympathise, Julienne. We are in exactly the same situation - and your words about living and working in places that you would rather not be in, away from family and friends, resonated with us. As non UK residents we saved for our retirement with the Derbyshire IOM. This was taken over earlier this year by KSF with assurances that our money would be safe! Like you, we also hoped to be able to retire in 2 years but this will be impossible now and as you so rightly put it, we don't have enough working years to recover from this.

Chris and Jo

Our Story

At the end of May this year we completed the sale of our London Home and on the advice of our Financial Advisor put our savings in Kaupthing in the IOM as the proceeds were converted in to Dollars to assist in our relocation to the USA, something told us we would have a better life there! We have bought a business (which is not doing as well as we were led to expect and requires investment) we bought a new home which we knew we could pay for and we expected to work hard and use some of our savings and its interest to get us through the first few years. I think it was nearly three weeks ago that this nightmare began and now we have a megre income from our business, a mortgage that we struggle to pay and a skeleton budget which pays only the essentials but not tax, healthcare and any other luxury like that. We are now on the edge of disaster because we worked hard for 20 years invested our money wisely and now could loose everything. I called the British embassy in Miami a weeks or so ago for advise and they told me to get as much money tgether as we can and go home...so much for that we decided to try and stay and fight. If our business folds which in this climate is a possibility the Landlord will come for our home and everything in it, if we dont earn enough the US governement can pull our Visa's and send us home...We had enough savings to cover our rent until the end of the lease if we needed it now that has all gone. If we come back to the UK we have no home and no money and no job and the worst economic market I have ever seen. We get no support in the US no healthcare nothing....We are so stressed by all of this we dont sleep, we dont eat well because we do not have the money, I am so tired that my limbs ache...I think that is a sign of depression...I am glad that I finally fond this site as we no longer feel so alone....I just want to tell you all that we know how you feel and am so very sorry it is a nightmare that most people cant comprehend...the feeling is like you have lost everything ...it is like mourning the death of a loved one and along with it every dream you ever had for your future. This was supposed to be our dream come true and may end up yet being the two of us living in a hostel in London somewhere horrific starting again from nothing in our 40's. I think the worst thing is that we have simply been abandoned by our Government and hung out to dry why have our savings not been protected like everyone else and yet our Governement seems to be the main cause of our situation.

A story to tell

You all may be interested may cheer you up or not. I attempted to cash in my 28,000 dollars on the 10th Oct only to be greeted by the Press release announcement on the Singer's website . I remember being sent a letter about Kaupthing, I thought it was a German bank so no alarm bells rung when i heard about the Iceland crisis.
I was born in 1945, my father was a Lancaster bomber pilot . I was born 6 months after my father died shot down fighting for his country. I was conceived the last time my mother saw my father whilst based in Darlington flying with the Canadian airforce. My mother was given practically no help by the Uk government in bringing me up. Thats another story. I studied hard worked hard all of my life and took early retirement from full time employment in the late 1990's. I took temporary employment and invested a bit. I invested on the misguided advice of the government £6000 in railtrack shares. BYERS need i say more !!!
In 2002 I was involved in a serious head on car crash and as a result of my head neck and chest injuries was signed off as being unable to work until 2011 when I will be 65. Up to the date of the accident I had paid 39 years National Insurance Contributions, but had had a 6 months lapse prior to the accident of not paying them because I had a work break. Apparently the rules changed for Uk residents that you had to have 2 full years of contributions before any claims. As a result I have not been given one penny help when I needed it most by the UK Government via incapacity benefit.
Ok I will look after myself, invest a bit, live off my £6500 year pension and invested £24000 of savings in Singer & Freidlander offshore account as being the only place I could find which gave reasonable exchange rates if buying Euros & Dollars. I cashed in my Euros at 1.26 luckily quite recently and waiting until it was a good time to cash in the Dollars. Oct 10th it was 1.69 to the pound.
Foiled again.
As I understand it the Uk Government has frozen 60% of the assetts of Ksfiom to help pay UK residents caught up in the Iceland fiasco.
Where are my 28000 dollars.
I have had a Royal Bank of Scotland Account for 20 years and most of the time my account is positive to the tune of between £1000 & £2000. Last year i received 57p interest on my current account. Where has all their money gone. Why does the Government think it fit to bail these people out . 60% of the rescue fund injected I hear. Did the Directors get 57p!!!!!!
It seems all the UK Government has ever done for me is to take.
I realise most people involved here are much worse off than me and I may get compensated, but that $28000 is very significant to me.
I think the iom Tywald will have to fight their cause as vigourously as they can, otherwise the damage will be irrepairable for the Island if the Depositors are not compensated in full.
Yes I had a fistful of dollars. I trust I dont have to become a Pale Rider to sort out The Good, The Bad and The Ugly!

kaupthing edge iom

After working 33 years in a factory,me and my friend decided to buy a property in florida as a investment.our investment was costing us that much money just for the bills we had to sell at a loss.Because the property was sold in dollas,Kaupthing edge was the best account to put it in.Now not only have i lost money on our investment i have no money at all left after working 33 years in a job i hated.

I have only just learnt of the fiasco that has led to Kaupthing's downfall. I read that there is/was a petition to sign- where, how can I sign? Like many others I stand to lose virtually all of my savings. Having never been in debt, been a highly conservative and cautious saver, I am devastated about the prospect of being robbed of savings that were supposed to be my pension. Used to hear so much about politicians harping on that people aren't saving enough for later on in life. What is the point. I though that lessons would have been learnt after the Robert Maxwell pension saga years ago. Obviously not.

Yours confidence in Banks and PM at rock bottom,
Very Upset


Peacefully browsing my latest issue of the Guardian Weekly, I have just discovered the KSF drama - and your site for us poor victims. Although I'd heard of the problems of Kaupthing in Iceland, I somehow felt that this would not concern KSF-IoM. So what a shock for a quiet Sunday morning.

I've listened to Alan Bell on the Manx radio and read the reports of your meeting with him. A big thank you to those of you who are trying to get our voice heard in the right quarters. Reading through what has happened so far makes me relatively optimistic that a solution will be found, so I'm trying not to panic. Like a few others, I get the feeling that the petition may be a bit hard on the IOM government (though maybe I'm being over-optimistic), but I intend to sign it anyway as the best way to make our voice heard (surely, if the IOM authorities are doing all they can for us they aren't going to do less because of it).

When I moved to France 25 years ago, it was my UK bank who first suggested I should move my account offshore, which I did. Later I opened an account with Derbyshire Offshore (IoM). When they sold out to KSF last year, I followed their advice and transferred my accounts in good faith. My reasons for moving offshore were to simplify my tax situation while keeping some of my funds and a current account in sterling. As a permanent resident and tax-payer in France, not liable to UK tax, it simply seemed easier to receive untaxed interest (which I have always fully declared and paid tax on in France). No-one ever pointed out to me that I was putting my hard earned money at risk. I understood there were guarantees ... After all I was not speculating with shares; this was supposed to be a secure investment. Did the Derbyshire lead us astray?

Having recently retired, I planned to use my little nest egg in IoM for some nice holidays. But at least I have my house and reasonable savings in France, so am a lot better off than some of you, whose stories are terrifying. We need to stick together and fight to get all our money back.

Reasons Why

Way back in the early 70s/80s I was an expat in the Middle East and I deposited my spare money in my UK bank deposit account with no problems at all, transferring money between banks easily. Then, 2005, I sold my UK house, moved to Spain, kept the balance in my UK bank deposit account. My bank wrote and said that the Government were being too intrusive and the bank were not prepared to divulge the information the Govt were requesting about their customers and would I please move my money! Really, a bank, asking me to go somewhere else!!
So I moved offshore. All went well for a while until interest rates dropped and KE looked good - so I moved.
Now I just feel sick, though I am not in such dire straits as many of your correspondents, and I have no doubt this is pure manipulation on the part of G Brown in an effort to look good at the next general election. It is criminal, it is theft, it is total disregard for everyone except maladministration team GB.


All I can say is this criminal.
This is a situation where alot of people should be dragged up to the docks.

Even the ministries shouldn't get away with this.
People grovel,slave,sweat and toil to get savings so they don't need to fall for the " get - a- mortgage and one free" lie.

I am still so angry I can hardly sleep at night.Then we are asked to pay our taxes on top.Its like rubbing salt into a wound.

Derbyshire Building Soc.

here in the far east where the streets are full of honking horns and thick black smelly smog detailed news of the Uk is ( probably mercifully) hard to come by. However reading the local News and that from a recent trip To Bangkok it is clear that many countries around the world have given 100% protection to Depositors. The World Bank has money to offer so too the IMF; the EU, apparently led from an idea by our own PM, have funds available to support their banks. The UK has funds available for the same purpose. Mr Brown confiscated most our our ( K.S& F IOM ) money to give to UK depositors.
The Icelandic government has nationalised their 3 main banks including K.S.& F and are obtaining a huge loan from Russia.
1. So why is the K.S & F IOM bank the only one going through the liquidation process. Why is it too not being propped back and in business ? I understand it was doing OK untill the UK government intervention.
2.The IOM is not part of the UK- Now we know!! Iceland isn't part of the EU. Now we know! So does this leave the IOM, a spot in the Irish sea, without any outside help?
3.Why is/was all my life's savings in an Off shore bank and particularly the IOM?
I have been an ex-pat for 28 years. I have paid the tax demanded of every land in which I have worked. I have decalared the interest to the Uk government. My tax burden has been the same or more than the UK tax. I owe nothing to anyone. I have worked long hours in terrible conditions. At times because of inflation my salary was going backwards. After 12 years working abroad I had 125,000 in the Bank- much more than I would have had if I had stayed in the uk. After 28 years and the sale of my later father's flat the balance has risen to 600,000 Now it is ZERO. My wife and I are financially crippled, even suicidal. I have this job but at 68 i was doing it just for fun, Seems I will have to keep it until it or I run out of steam.

I live just down the road ( around 10 miles ) from the HQ of the Derbyshire Building Society. It's ours, its local, it was a friendly society full of people who also live in the same area. I took their advice and opened my account with the Derbyshire IOM around 27 years ago. When they decided to withdraw their office from the IOM I followed their advice and simply slid my savings into K.S&F. At first I thought the Bank could be German based . I rang and was advise of the Icelandic connection. Good Sea Faring stock. Surely the Derbyshire had done all the checks and was absolutely concrete confident that the new owner was sound and secure.
So why is our bank the only one in Liquidation
why is our bank the only one without support
what is the Derbysghire doing about the Current situation- how about they buy back all their previous customers.
did the Derbyshire carry out their due dillegnce correctly and
can we sue the Derbyshire for incompetence, poor advice, and neglect ?
the recent merger of the Derbyshire into the Nationwide now means that if in trouble only one account the one you have in Nationwide or the one you have in the Derbyshire is covered by the guarantee. The Derbyshire has just halved it's risk.
Anyone else want to sue the Debyshire?


Absolutely - couldn't agree more - like you my life savings werein the Derbyshire. I accepted the Kaupthing buy out in good faith, after all when did an offshore bank last go bust??? This is the basis for the agrument for no depositor portection in Jersey.

I am so anygry that out hard earned savings are bailing out UK residents. I was born in England and lived there until 8 years ago. My family are all in the UK. Yet if I was a Polish immigrant of 3 months living in the Uk and savings with Kaupthing Edge or Ice save, I would be ok, but a British born, British tax payer with a British Passport, I'm left to rot. Disgrace.

Available for Interview

My husband and I live in Tbilisi, Georgia with our 3 young daughters. Our entire life savings of £535,000 were in a one year bond with KSFIOM with the intention of buying a family home in the UK next year when we return. We now can't afford to go back to the UK and as my husbands contract finishes in the next 12 months I don't know what we are going to do. This is not what we had planned for our childrens future, I'm just grateful that they are too young to understand.

Community Nurse 33 yrs service

Recently Divorced after 21 yrs Marriage, Divided assets of my Home, 1 dependent.

Retired due to injury at work after 33 years Hard Work as a NHS Registered Nurse, savings from Sale of my House of £91.500 in KSF IOM LTD.
Effectively now Homeless !!!!I was going to buy another home for my daughter and I, now we are in one Room living <<<<<<

Where is the JUSTICE?? ....ISLE OF MAN IS PART OF THE UK....

I am not a millionare just wanted to put my money in what I thought was a Safe Haven I TRUSTED>>>>>>

Thank you all for the support on this superb site!!! UNITED WE STAND!!!

Dawn Richardson.
Southampton UK


My dad fought in the second world war for Great Britain.
My Mum worked all of her married life in a hospital.
My parents are just a normal every day hard working couple with one child
My parents lived Great Britain for their 60 plus years.
My husband and I moved overseas with our daughter. My husband died of a heart attach.
My parents moved overseas to support me and my daughter sold their house in Britain and put their money in the Derbyshire Building Society as they were not allowed to maintain a Uk bank account
When the Derbyshire was taken over they were not allowed to take out their life savings.
Now after a life time of living simply and giving back to Britian .... it is all taken away from them and they can never buy another home again.

YOU GORDON have it in your power to redress this situation !!

1 My Grandfather: was one of the old contemptibles who fought ALL through the 1st world war from day one. Injured twice, gassed three times all in Paschendale/Ypres, died from the gassing in later years at home the sofa.
2 My Father: from a boy fought through the 2nd world war as soon as he was of age in the role of commando, injured and mentally scarred.
3 My Father: built a damn good business in the UK and managed to save despite having to pay 98 pence in the pound during those oh so wonderful socialist days in the UK
4 Myself: in a "military role" cleared mines from Libya through Kuwait and Afghanistan and beyond..... still standing.
5 Myself: also created businesses and work overseas and repatriated the funds to the UK, offshore.
6 All funds recently ended up with KSFIOM.
7 Total Result Of 3 Generations of work, service and loyalty to the UK after scrimping saving and depositing ?? ..... NOTHING. Shafted by the UK Government and have now lost everything.
8. OH! and before you say it's all Iceland's fault YOU GORDON have it in your power to redress this situation !!

A Home Fit For Heroes my A**

Thanks Gordon (Brown) I shall ensure that you are NEVER FORGOTTEN one way or the other.

Irony - Logic Inversion

We are told to be prudent with our money. We are told not to take on credit that we cannot pay back and save for a rainy day. The sub prime market has collapsed the system. We the depositors have been suckered. They have used our money for their gains. Had we taken a loan, we would have had been the hunter. In our position we have become the hunted. An animal that is dispensable.

We are worthless, a nobody, nothing zilch......

Is this what I should tell my boys when they grow up? What lesson have I learn't? What can I convey to my boys so that they are armed and ready for this ruthless world? Kill or be killed ? Survive at any cost?
Madness, utter madness...this is not freedom, it is an injustice, it is a violation of my human rights to earn and provide basic necessities for me and my family.

I have nothing left but my sanity.

With this I will fight till the end......we will win, but at a cost, a cost that will be worth the lesson for us all in this capitalist world. A lesson that I hope will filter through our minds and change our behaviour in which we live and in which we see the future of mankind. We will either kill this planet ourselves or both....what a mad world!

How do I tell my son

Our son is dyslexic and at just 7 years old was considering killing himself following years of neglect and ridicule in mainstream education. My husband and I decided to sell our house to raise funds to send him to a specialist school where he would receive the education and encouragement he needs for a healthy, happy future. I placed a large part of these funds with KSF IOM last month - thinking we were getting the best return on our deposit in a safe, reliable bank. We are now living in rented accomodation. The whole package was intended to give our son reassurance and confidence in his future - he has been doing so well at his new school. I feel sick with anger and frustration. How do I tell my son that I messed up? I do not even have the luxury of showing my worries as that would undo all the good achieved so far. Brave face on every morning, I have to find the way through this.

Widows and orphans

I feel so sorry for all you victims and the thread of sameness running through the stories. I and my daughter were both depositors in this bank; it consitutes my daughter's entire savings. The money was a legacy from her grandmother saved after a lifetime of granny being frugal. It was earmarked for her son's (my grandson's) education among other things. We were being safe and saving for the future. And we got caught up in all this turmoil. I am hopeful some funds will be recovered and we are lucky not being totally dependant on these monies; we can still work; life will just not be so easy.
Rightly or wrongly I feel angry at the greed of these city whizz kids especially in America. I sometimes feel they seek out widows and orphans!!
My sympathy to you all.


I am getting really pi..ed off now,at first i was really down,that is giving way to anger now,most of my life (i am 39 ish)i have took gambles etc ,most of them paid off,god knows how but a numpty like me ended with nearly £250k,in my younger days i would have tried to make more money,but i thought,no i dont need any more ,i ll put it in the bank for a year or so and chill out.i aint chilling out now,i know there are people worse off than me,its just unbeleivable whats happened,the lack of info coming through,the fact that a big chunk of my cash might even be stuck in uk!
off now for another vodka and a smoke,at least its sunny and warm here today.i feel such a plonker ,havent really told anyone,feel almost ashamed.


I will be 44 next week not 39 with a young daughter but am in avery similar position to you dans le merde. You are not alone. Talk to someone- it helps. You are not a plonker. Krapthing was a large viable Bank and KSF Isle of Man was apparently trading well and appeared on most of the offshore best buy tables. Much of the blame lies with the UK Govt who may well be sued for their actions. Money is being recouped and I am sure the liquidator is doing everything possible to unfreeze assetts in the UK and enforce Krapthings parental guarantee in Iceland. There is also a possibility of a political solution and if not legal action may well be a possibility. In the meantime a partial payout is probable.This is far from hopeless. Use whatever energy you have to at least morally support expat, bblair and everyone fighting out there to whom I am sure like me you are truly grateful
Ps I confess to a couple of smokes but am yet to hit the bottle

thanks for that

i have got 2 young kiddies and feel guilty i may have squandered there future,its like i put it on a horse or something stupid.off now for a little vodka and a smoke.

i will be eternally grateful to the guys who set this up,wish i could do something else,stuck in a little town in france.

what the hell my story

Feeling I may as well add to the sob stories! wasn't going too but my optimism is wavering.
42 year old, sold my business and most everything else to start a fresh. Decided to have more kids youngest 4 months old. Put all my life earnings in cash and decided to take it easier. Mainly because I have a degenerative spinal condition and want to enjoy life while I still can. So can't get a job, don't want disability benefit. Had £855k .Now absolutely no wealth, £50k wont pay my expenses. Living in rented accommodation, cause decided to wait see how housing market goes, can't pay rent, and on top of that is bloody winter soon!!!
Oh well, not giving up yet, I'm still able to fight with words, mightier than the sword don't ya know. LOBBY YOUR MP NOW, DO IT DO IT DO IT.

Another family loss

Not quite as tragic as the poor young widow story, but still a heart-breaker.
My Dad died last year in London. I live in Australia.
He left me a legacy in his will to help me pay off morgage debts and get something started for his grandchildren (I have two kids).
Since his legacy was in sterling I left it in my KSFIoM acount awaiting a better exchange rate versus the Aussie $ before bringing it over.
The moment to make the transfer was last week on about 8th October.
I've had the account with Derbyshire for many years and have always thought their service excellent.
So what now? Still mortaged up to the hilt. Nothing for the grandchildren and my poor old Dad's legacy down the pan.

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