Members of Ilfracombe and District Credit Union to receive compensation in the next few days

1st April 2011

Following the closure of Ilfracombe and District Credit Union Limited, and the subsequent referral of the credit union to the FSCS by the Financial Services Authority (FSA), the FSCS has declared the credit union in default. We are aware that members of the credit union have been unable to access their money since its closure, and will be sending payments to members in the next few days.

The FSCS has already received the information it needs to pay back depositors and expects to pay compensation in the vast majority of cases well within seven days of the default date. Any remaining claims (which are likely to be more complex) will be paid within twenty working days of the default date.

Ilfracombe and District Credit Union Limited has just over 140 members with accounts totalling approximately £76,000. The FSCS declared it in default on Wednesday (30 March 2011), which means the Scheme is satisfied that the credit union is unable, or likely to be unable, to pay back its members’ deposits.

Members of the credit union will be entitled to compensation of up to £85,000 each, and will not need to complete an application form to make a claim. The FSCS can pay compensation automatically once it has the information it needs about each member’s account. In most cases, compensation will be paid by cash over the counter through Post Offices for amounts under £1000 and by cheque for anything above that figure.

The FSCS will provide a further update on its website by 6 April 2011.