Fast FSCS payout to members of South East Birmingham Community Credit Union

1st February 2011

Savers with the South East Birmingham Community Credit Union have now had their savings back after fast action by the Financial Services Compensation Scheme (FSCS).

The FSCS aims to pay the vast majority of savers back within seven days if a bank, building society or credit union goes bust. And the Scheme delivered. Compensation was sent to 710 members of the credit union, which was declared in default on 26 January, on the following day. Another 17 were paid by yesterday (31 January 2011) and two more payments are in the pipeline. One claim remains outstanding pending further investigation

Working with the credit union to get the information it needed about depositors, the FSCS wrote to most members with a letter allowing them to collect their cash over the counter at their local Post Office or receive a cheque.

FSCS has paid out almost £478,000 in compensation to members of the credit union.