17th September 2015
Compensation on the way for hundreds of London savers.
The Financial Services Compensation Scheme (FSCS) has made payments to over 740 members of The Rainbow Credit Union.
The payments were in the post only days after the credit union, based in Chingford, London, was placed into administration on 14 September 2015. It delivers on FSCS’s promise to pay back members within a week.
Credit union records show over 740 members of The Rainbow Credit Union were due compensation for the deposits they held.
Mark Oakes Head of Communications says: “FSCS protects people when authorised financial services firms cease trading. So I’m pleased to confirm FSCS payments have now been made to members of The Rainbow Credit Union. It is good news for those members.”
FSCS is aware that the credit union held around £500,000 on deposit for its members. People with less than £1000 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.