You're protected, FSCS tells Millom & District Credit Union members
15th May 2013
Compensation on the way for hundreds of savers
Help is on the way for hundreds of Millom & District Credit Union savers after it went into liquidation today (15 May 2013). The Financial Services Compensation Scheme (FSCS) is stepping in to protect members of the credit union based in Millom, Cumbria. The overwhelming majority of savers will get their money back within seven days, says the FSCS.
Since 2001, it has paid out more than £26bn in compensation to more than 4.5m people.
People will not even need to lift a finger to get their money back. Using credit union records, FSCS will automatically send payments to members of the credit union.
Some 530 people have about £235,000 with Millom & District 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.
Mark Oakes, FSCS Head of Communications, says help is on the way. “FSCS is protecting hundreds of Millom & District Credit Union members. We are here for you. Your savings are safe and we will get them back to you within the next week. And you won’t need to lift a finger because the process is automatic. Our £85,000 limit will protect every member of the credit union so you can rest easy because your savings are safe.”
Financial services firms fund the FSCS through a compulsory annual levy. It protects deposits, insurance and investments when UK-authorised firms go bust. It has the most wide ranging protection of any scheme in the world.