CommuniSave Credit Union declared in default

19th July 2013

Compensation on the way for Birmingham credit union savers

The Financial Services Compensation Scheme (FSCS) is stepping in to protect over 2,000 members of CommuniSave Credit Union (also known as South Birmingham Community Credit Union Limited) after it stopped trading today (19 July 2013). The credit union is based in Birmingham.

The compensation scheme is pledging the overwhelming majority of savers will get their money back within seven days. 

People will not need to lift a finger to get their savings back.  Using credit union records, FSCS will automatically send payments to members of the credit union.

Some 2000 savers have just over £1m with CommuniSave Credit Union. People with less than a thousand pounds will receive a letter to get cash over the counter at their Post Office. Anyone with more than this will receive a cheque.

FSCS protects up to £85,000 of savings or £170,000 for joint accounts. It has come to the aid of more than 4.5m people since 2001 while paying out over £26bn in compensation.

Kate Bartlett, Operations Director for FSCS, says help is on the way.  “FSCS is protecting CommuniSave Credit Union members. We’re here for you and we’re ready to help.  Your savings are safe and we will get them back to you within the next week. And the process is automatic so you won’t have to apply for our protection. FSCS guarantees up to £85,000. That will protect every member of the credit union.”

Financial services firms fund FSCS through a compulsory annual levy.  The Scheme protects deposits, insurance and investments when authorised firms go bust. It has the most wide ranging protection of any scheme in the world.

We also have a short video explaining how FSCS can help when your credit union goes out of business