The Financial Services Compensation Scheme has announced the failure of Glasgow-based Parkhead Credit Union Ltd, which was declared in default on 3 April 2019.
Placed into administration, Parkhead Credit Union Ltd has now ceased trading. For any questions about this default, please contact FSCS.
As a customer of Parkhead Credit Union you don’t need to do anything. FSCS is a free service and we’ll automatically return customers’ individual balances up to £85,000, based on the information we’ve received from Parkhead Credit Union.
We’ll contact customers by post in an unmarked envelope. Customers with up to £1,000 in their account will receive a letter to get cash over the counter from the Post Office. For balances of more than £1,000 you’ll receive a cheque. Customers who don’t have another bank account should open one as soon as possible to bank their cheque.
If your child has a Parkhead Credit Union account, we’ll send payment in their name. If an adult manages the account on a child’s behalf, we’ll make the cheque out in the child’s name and send it to the adult’s address (if the address was registered with Parkhead Credit Union).
We aim to return customers’ money within 7 days from 3 April 2019, when we declared Parkhead Credit Union in default. If a case is more complex, we’ll settle claims within 20 working days.
If you disagree with the amount we've paid, please contact FSCS.
You can download the official determination papers here.
Commonly asked questions
Any payments transferred to your account after 3 April 2019 won’t be added to your balance. Contact FSCS if you've any queries.
Any account you held with Parkhead Credit Union will no longer work. If your salary and benefits are paid into your account, open one elsewhere as soon as possible, and tell your employer or the Department for Work and Pensions.
Members who want to open a new credit union account can do so with alternative credit unions. The website www.findyourcreditunion.co.uk should help in finding what’s available.
If you've any payments coming into your account by standing order, you should cancel them. No further money will be credited to your savings account. You can cancel standing orders at any branch of your bank or building society, over the phone or by secure online banking. But you'll need to give your bank/building society a couple of days’ notice before the payment is due to come out of your account.
If your standing order is for a loan repayment, don’t cancel it. Any loan agreement you had with Parkhead Credit Union remains in place and you must maintain your repayments as originally contracted.
If you made loan repayments via a service point, contact FSCS to discuss repayment by other means.
If you made payments covering both loans and savings, FSCS can advise you of the net payment you'll need to make each month for your loan, so you don’t fall into arrears.
We’ll send any payment to the name and address that Parkhead Credit Union held on its database.
For any name change, you’ll need to provide an original document or certified copy of an official document showing your change of name, for example a marriage certificate or deed poll.
For any change of address, if you didn’t tell Parkhead Credit Union of the change or told them but didn't receive confirmation, we’ll need to see evidence of the address change. You can use a document such as a council tax bill, utility bill (but not a mobile phone bill), or benefits entitlement letter, but the letter must be less than three months old.
Please contact FSCS with evidence of your change of name or address. Once confirmed we'll make payment in your new name or to your new address as appropriate.
If the estate has already received cash over the counter, or banked the cheque payment, you don’t need to do anything. If the estate hasn’t received the payment, you’ll need to provide at least one proof of identity in the form of the grant of probate or letters of administration. If neither are available you'll need to provide a will and death certificate.
Please provide the relevant document to FSCS so we can arrange payment.