You're protected, FSCS tells Portadown Diamond Credit Union members
26th April 2013
Compensation on the way for over a thousand savers.
Help is on the way for over a thousand of Portadown Diamond Credit Union savers after it went into insolvency today. The Financial Services Compensation Scheme (FSCS) is stepping in to protect members of the credit union based in Craigavon, Co Armagh. The overwhelming majority of savers will get their money back within days, says the FSCS.
Using credit union records, the FSCS will automatically send payments to members of the credit union. FSCS will pay the vast majority of savers within seven days.
Some 1,600 people have about £1.8m with Portadown Diamond 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 billions of pounds in compensation.
Mark Neale, FSCS Chief Executive, says help is on the way. “FSCS is protecting Portadown Diamond 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.”
Financial services firms fund the FSCS through a compulsory annual levy. It protects deposits, insurance and investments when authorised firms go bust. It has the most wide ranging protection of any scheme in the world.
Northern Ireland credit unions came under FSCS protection just under a year ago. Portadown Diamond Credit Union is the first one to fail since then.