East London Credit Union Ltd declared in default: FSCS to protect 5,500 members
The Financial Services Compensation Scheme (FSCS) has stepped in to protect the members of East London Credit Union Ltd, trading as Waltham Forest Community Credit Union, which has stopped trading and is now in default.
FSCS will compensate within seven days the vast majority of the 5,500 members of the Walthamstow-based credit union. Using East London Credit Union Ltd’s records, FSCS will send payments out automatically.
Members with up to £1,000 in their account will receive a letter to get cash over the counter at their local Post Office. Anyone with a balance of more than £1,000 will receive a cheque for their balance direct from FSCS.
FSCS protects up to £85,000 of savings – double that for joint accounts – and has come to the aid of more than 4.5m people since 2001, paying out over £26bn in compensation.
FSCS expects the total payout for East London Credit Union Ltd to be just over £2,250,000.
Caroline Rainbird, Chief Executive of FSCS, said:
“FSCS is protecting the members of East London Credit Union Ltd and helping them to get back on track. Our aim is for the vast majority of its customers to get their money back within seven days.
“All members of the credit union need to know that their money is safe and about the safeguards that are in place. Their savings are protected up to £85,000, and joint accounts are covered for £170,000.
“FSCS covers a wide range of products and services. As well as for claims against a credit union, bank or building society, customers can be assured that should they lose money due to the failure of an authorised financial services firm, such as their investment or mortgage adviser, or debt management provider, that FSCS provides protection of up to £85,000 per person.”
For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit FSCS’s website and see our compensation limits page.
Queries about East London Credit Union Ltd can be directed to Stephen Cork of Cork Gully LLP, who has been appointed as liquidator. The liquidator can be contacted by telephone in the first instance on 0333 210 1548.
The postal address for the administrators is East London Credit Union Ltd c/o Cork Gully LLP, 6 Snow Hill, Farringdon, London EC1A 2AY, and the email address is ELCU@corkgully.com.
T: 020 7375 8646
T: 020 7375 8631
Notes for editors
Read more about the remit of FSCS on our Notes for editors page.
For more information on protection, see our Compensation limits page.