15th September 2015
FSCS protects over 740 members of The Rainbow Credit Union
The Financial Services Compensation Scheme (FSCS) is stepping in to protect members of The Rainbow Credit Union (“Rainbow CU”) after it was placed into administration and ceased trading on 14 September 2015. The credit union is based in Chingford, London and has over 740 members with some £500,000 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. FSCS will automatically send payments to members of the credit union using credit union records.
People with up to £1000 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.
Mark Oakes, Head of Communications, says help is on the way. “FSCS is protecting The Rainbow Credit Union members. We’re here for you and we’re ready to help. Your savings are protected up to £85,000, and we’ll get them back to you within the next week. The process is automatic so you won’t have to apply for compensation.”
FSCS is funded by financial services firms through a compulsory annual levy. The Scheme protects deposits, insurance and investments when authorised firms cease trading. It has the most wide ranging protection of any scheme in the world. For more information visit our Q&As for deposits.