FSCS steps in to protect members of South East Birmingham Community Credit Union
26th January 2011
Members of South East Birmingham Community 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 today (26 January).
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.
South East Birmingham Community Credit Union has 731 members with accounts totalling some £479,000. Declaring the credit union it in default 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. In most cases, compensation will be paid by cash over the counter at Post Offices.