Derby United Credit Union declared in default
14th April 2015
FSCS protects nearly 500 members of Derby United Credit Union
The Financial Services Compensation Scheme (FSCS) is stepping in to protect the members of Derby United Credit Union (“Derby CU”) after it was placed into administration and ceased trading on 13 April 2015. The credit union is based in Derby, East Midlands, has almost 500 members with some £173,000 in savings.
The Scheme says that the overwhelming majority of savers will get their money back within seven days.
And 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.
People with up to a thousand pounds will receive a letter to get cash over the counter at their local Post Office. Anyone with more than this will receive a cheque, direct from FSCS.
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 Derby Credit Union members. We’re here for you and we’re ready to help. Your savings are safe and we will get them back to you within the next week. And the process is automatic so you won’t have to apply for protection. FSCS guarantees up to £85,000. That will protect every member of Derby United Credit Union.”
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.