Compensation procedure

Compensation Procedure
Deposit Guarantee
STEP 1: INITIATION
D DAY
Unavailability

The Prudential Supervision and Resolution Authority (ACPR) determines that the deposits of the troubled bank's customers are "unavailable".

The ACPR then asks for intervention from the FGDR which is made responsible for compensating the deposits up to €100,000 per customer within 7 working days.

The potential compensation of other financial products is handled by the FGDR. Products purchased from insurance companies (for example, life insurance) are not involved in the failure and remain active. They would be covered by the personal insurance guarantee fund in the event of the insurance company's failure.

The "deposits unavailability date" is the day on which the bank actually closes, and on which the customers lose free access to their accounts. It is also as of this date that customers' account statements and compensation amounts are calculated.

 

Customers do not need to take any action other than opening an account at another banking institution to receive their compensation and transfer their regular services.

STEP 2: PREPARATION
FROM D TO D7
From D1 to D+2

The bank has two working days to settle each customer's accounts by including all outstanding transactions (cheques, bank card deferred debits, etc.) that may have been completed and interest or remuneration due. It identifies the accounts and amounts to be compensated by the deposit guarantee scheme.

The bank sends a final statement of account to each customer in the usual format. This statement is the reference document for calculating the compensation. The customer is likely to receive the FGDR’s compensation statement a few days before the final bank account statement. 

It then sends this information to the FGDR which uses it to determine the compensation amount. The FGDR performs a technical verification of the files and validates the amounts to be compensated.

 

Information au public

During this time, the FGDR informs the public of the compensation procedure on its website or through the media and answers questions from the public via its Call Centrer: +33 (09) 77 420 421. 

"Which institution is concerned, what compensation measures, how quickly, where to get information, etc.?"

 

The FGDR answers customers' general questions via its call centre and the website. It communicates with the media.

The FGDR answers customers' general questions

Step 3: availability of compensation and payment to customers
AT THE LATEST ON D+7
Lettre recommandée

The FGDR opens a "Secure Compensation Area (SCA)" accessible on its website www.garantiedesdepots.fr. 

This secure site is opened within 7 working days of the failure in order to make compensation available to each customer. 

Customers who have provided their bank with an email address or a mobile or landline phone number may access the SCA. Those who have provided an email address or mobile phone number will receive a personal message inviting them to connect immediately to the SCA once it is opened. After the customer has been identified and authenticated in this this Area, he/she may choose a means of payment: 

  • either by electronic transfer, after recording the details of a bank account held by another institution;
  • or by cheque sent by La Poste with acknowledgement of receipt.

In both cases, the FGDR produces a compensation letter which contains:

  • information about the customer and his/her accounts,
  • the list of accounts covered and not covered,
  • the compensation calculation, 
  • the amount of compensation paid,
  • the amounts not compensated (e.g. the portion of the accounts exceeding €100,000),
  • the compensation cheque or the amount of the electronic transfer,
  • and an explanatory note on the details and the procedure for compensation by the FGDR.

The FGDR contacts all customers either by e-mail or by text message, if their valid contact details were recorded by the bank. 

For the majority, the compensation will be made available in less than 7 working days. This period may be extended only in cases where additional information or processing is requested.

During this time, the FGDR’s Call Center: +33 (09) 77 420 421 remains open. 

 

Some complex situations may require a longer processing time, such as improper customer identification, incorrect address, customer moved without providing a new address or recent death of the customer with settlement of the estate pending.

During this period, the FGDR's call centre is available to answer questions or contact customers as needed.

The FGDR answers customers' questions

Step 4: Special cases
After D+7
Traitement des cas particuliers

The FGDR opens a Processing Centre for handling special cases, additional compensation and any claims until they are completed.

Examples include a customer file that contains an incorrect identity or address and no telephone number or e-mail address to contact the customer.

For example, when the customer receives additional compensation in respect of “temporary extraordinary deposits”, the coverage level is increased to €500,000 for each sum that was received less than three months prior to the bank's failure and resulted from events such as the sale of residential property, a lump-sum payment of compensation for harm, a compensatory benefit, a settlement indemnity, a gift or a bequest.

This request must be sent to the FGDR by post or by email through the SCA within a maximum of two months of receipt of compensation.The FGDR continues to handle special cases and complex situations.

 

THE FGDR'S ADVICE TO CUSTOMERS
Le conseil du FGDR
  • Inform your bank of every change in your personal situation, for you and your children.
  • Inform your bank of changes of address, landline and mobile telephones and e-mail.
  • Consult your bank advisor regularly.