5 - What are the main steps of the deposit guarantee compensation procedure?

STEP 1: INITIATION OF THE COMPENSATION PROCEDURE

The procedure is initiated by the Autorité de Contrôle Prudentiel et de Résolution (ACPR) as soon as it determines that the bank in question is no longer able to return its customers' holdings. The ACPR then contacts the FGDR and the compensation procedure is initiated immediately.

 

STEP 2: PREPARATION, SETTLEMENT OF ACCOUNTS AND TRANSMISSION OF INFORMATION TO THE FGDR.

The institution prepares its customers' account settlement and sends this information to the FGDR.

The FGDR calculates each customer's compensation and then prepares a compensation letter for each customer which includes:

  • information about the customer's accounts,,
  • the list of covered accounts and excluded accounts,
  •  the compensation calculation,
  •  the non-compensated amounts,
  • the compensation cheque, if applicable,
  • and the "Compensation by the FGDR" information notice.

 

STEP 3: COMPENSATION PAYMENT

The FGDR opens a Secure Compensation Area in order to issue compensation to recipients:

  • either by bank transfer after the customer has entered new bank details:
  • or by cheque sent with notice of receipt.

In both cases, the compensation decision is sent by post in the form of a letter that includes a compensation statement and an information notice.

The maximum compensation period is:

A longer period may be allowed only in cases where special processing is requested.

After receiving their initial compensation, customers have two months to dispute their compensation or file a claim with the FGDR for additional compensation for "Temporary Extraordinary Deposits". The claim must include all supporting documents.

 

STEP 4: END OF THE COMPENSATION

The FGDR continues to process special cases, additional compensation relating to "temporary extraordinary deposits" and any claims until they are completed.

Important note: customers are strongly advised to inform their bank of any changes in their name, postal or e-mail address or telephone number. This is needed to ensure the quality of the information exchanged between you, your bank and the FGDR in case of compensation

 

To learn more, refer to the "Compensation Procedure" section.