19th November 2014
The Financial Services Compensation Scheme (FSCS) is stepping in to protect nearly 440 members of Lower Iveagh Credit Union Limited (‘Lower Iveagh CU’) after it was wound up on 19 November 2014. The credit union is based near Belfast in Northern Ireland.
The Scheme is pledging that 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 440 savers have just over £400,000 with Lower Iveagh CU. People with up to 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, Director of Operations for FSCS, says help is on the way. “FSCS is protecting Lower Iveagh Credit Union members. We’re ready to help. Your savings are safe and we will get your money back to you within the next week. The process is automatic so you won’t have to apply for compensation. We will pay up to £85,000, so every member of the credit union is protected.”
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. For more information visit our Q&As for deposits.
We also have a short video explaining how FSCS can help when your credit union goes out of business.