FSCS steps in to protect members of Havant Area Savers Credit Union

7th January 2011

Members of Havant Area Savers Credit Union can expect to receive compensation from the Financial Services Compensation Scheme (FSCS) in the next seven days, after the credit union was declared in default.

The FSCS is working with the credit union to get the information it needs to pay back depositors quickly. The FSCS will aim to pay compensation in the vast majority of cases within seven days, and pay any remaining claims, which are likely to be more complex, within twenty working days.

Havant Area Savers Credit Union has just under 260 members with accounts totalling some £86,000. The FSCS declared it in default late yesterday, 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. Once the FSCS has the information it needs about each member’s account, it will make compensation payments automatically. In most cases, compensation will be paid by cash over the counter through Post Offices.