The government ought to take action now to protect consumers with Icesave savings accounts, an expert has claimed.

David Kuo, head of personal finance at Fool.co.uk, called on the government to avoid any delay and ensure customers of the bank are "properly informed".

"There are a lot of worried customers, and they are anxious because they do not know whether their money is safe," Mr Kuo stated.

Due to the precarious position of Icelandic banks, Icesave is no longer processing deposits or requests for withdrawals from its online accounts.

According to Mr Kuo, the government ought to have "foreseen" such events happening and should have had contingency plans in place.

Those with savings accounts with the firm now have to claim part of their money from the Iceland authorities and the rest from the UK Financial Service Compensation Scheme.

Known as 'passporting', the process has not been "stress tested", the expert warned.

In the event of it failing to work, the government "must ensure that all UK customers are fully reimbursed", he stated.