Streetcred Credit Union Update

23rd October 2007

Following the announcement last week that Streetcred Credit Union had closed its doors, the Financial Services Compensation Scheme (FSCS) can now confirm that it has today (23rd October 2007) declared the credit union in default. This means FSCS is now in a position to start considering claims for compensation from members who had money deposited with Streetcred Credit Union.

Declaring a credit union in default is part of a process in which a firm regulated by the Financial Services Authority (FSA) has been found by FSCS to be unable, or likely to be unable, to pay claims against it.

FSCS can pay compensation to members of Streetcred Credit Union, for financial loss, of up to £35,000 (made up of 100% of the first £35,000). To claim compensation from FSCS members of the credit union will need to complete and return an application form. If you are listed as a member of this credit union, and have not yet received an application for compensation from FSCS, you should receive one in the next week. FSCS processes 94% of credit union claims within four weeks.

Jargon Buster

  • Credit union

    a financial co-operative which is owned and controlled by its members.
  • FSA

    Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.
  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.