FSCS to protect 2,900 members of Hartlepool Credit Union Limited

1st August 2016

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Hartlepool Credit Union Limited, which has stopped trading. The credit union is now in default. This means it cannot re-pay deposits to its 2,864 members.

The vast majority of members will be compensated within seven days without having to lift a finger. FSCS will use the credit union’s records to automatically send payments out to them.

The process is easy. People with up to £1,000 in their account will receive a letter to get cash over the counter at their local Post Office. Anyone with more than this will receive a cheque for their balance direct from FSCS.

FSCS protects up to £75,000 of savings – double that 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 at FSCS, said:

“We are protecting members of Hartlepool Credit Union Limited. We’re here for you, and we’re ready to help. Your savings are protected up to £75,000, and joint accounts are covered for £150,000. You should get your money back within the week. The process is automatic, too, so you won’t have to apply for compensation.”

FSCS expects the total pay-out for Hartlepool’s members will be more than £405,000.

For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit http://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/

Any queries about Hartlepool Credit Union Limited can be directed to the administrators, Jo Milner and Stephen Cork, of Cork Gully LLP, 52 Brook Street, London W1K 5DS. www.corkgully.com. Tel: 020 7268 2150.

Jargon Buster

  • Credit union

    a financial co-operative which is owned and controlled by its members.
  • Deposits

    money placed in a bank or similar institution to earn interest or for safe-keeping.
  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.