30th October 2014
Payments have now been made to more than 800 members of Redcar & Cleveland Money Tree & Glen Credit Union ('Redcar & Cleveland CU'), the Financial Services Compensation Scheme (FSCS) says.
The payments were in the post only days after the credit union, based in Redcar, was wound up on 24 October 2014. It makes good on the FSCS promise to pay back members within a week.
Credit union records show over 800 members of Redcar & Cleveland CU were due compensation for the deposits they held.
Mark Oakes, Head of Communications, says: "FSCS protects people when authorised financial services firms go bust. So I'm pleased to confirm FSCS payments have now been made to members of the Redcar & Cleveland Credit Union. It is good news for those members."
FSCS is aware that the credit union held around £200,000 on deposit for its members. 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 in the UK with bank, building society or credit union accounts. Since 2001, FSCS has protected more than 4.5m people and paid out more than £26bn. You can find out more about FSCS protection for deposits at www.fscs.org.uk/protected.
For more information, visit our Q&As for deposits.