FSCS pays thousands of Severn Four Credit Union members

12th March 2013

Payments in the post

Payments are on the way to thousands of Severn Four Credit Union members, the Financial Services Compensation Scheme (FSCS) says. These payments were in the post yesterday (11 March 2013) to nearly 1,500 people.The news comes only a few days after the credit union ceased trading. It makes good on the FSCS promise to pay back members within a week. Credit union records show nearly 1,500 members of the Severn Four Credit Union were due compensation for their deposits held with the credit union.

FSCS Director of Operations, Kate Bartlett, says: “FSCS protects people when authorised financial services firms go bust. So I’m pleased to confirm FSCS payments are on the way to members of the Severn Four Credit Union. It is good news for their members. Your payment is in the post.”

Credit union Records show members of the credit union had around £460,000 on deposit. 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 savings up to £85,000, which covers about 98% of people. Since 2001, FSCS has protected more than 4.5m people and paid out more than £26bn. You can find more information about FSCS protection for deposits at www.fscs.org.uk/protected/