15th August 2016
The Financial Services Compensation Scheme (FSCS) has protected thousands of people affected by the failure of a credit union in County Durham.
Hartlepool Credit Union Ltd stopped trading on 2 August, and was unable to pay more than £405,000 to almost 3,000 people.
FSCS has returned balances to the vast majority of 2,864 members of the credit union, sending them a cheque for amounts over £1,000, or money orders for below that figure, cashable at any post office.
Mark Oakes, Head of Communications at FSCS, said:
“When Hartlepool Credit Union closed, we said FSCS would pay the overwhelming majority of people their balances within seven days, and that is what we have done.
“Our role is to protect people at times like this. Hartlepool Credit Union was unable to pay members their money back, so we stepped in.
“Our free and automatic service means we acted when the credit union closed.”
Anyone who hadn’t kept their address details up-to-date with the credit union, and hasn’t yet made contact with FSCS, should do so, to get their money back. Tel: 0800 678 1100 or www.fscs.org.uk.
FSCS protects the customers of authorised financial services firms, covering £75,000 in current and savings accounts. Some 4.5m people have been helped in the past 15 years, receiving a combined £26bn. Handling insurance, investments and home finance cases, including mortgage advice, as well as deposits, it may pay compensation if a firm is unable, or likely to be unable, to pay claims against it.
For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit https://protected.fscs.org.uk.
Any public queries about Hartlepool Credit Union Ltd can also 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.
Notes to editors
1. FSCS is the UK's statutory compensation scheme for customers of authorised financial services firms. FSCS is funded by the financial services industry and protects investment business, deposits, home finance – mortgage – advice, and general insurance and insurance broking. FSCS can pay for financial loss if a firm cannot pay claims against it. We are independent, and do not charge individual customers for using our service.
2. Before FSCS can declare a credit union in default and pay compensation to its members, it must be satisfied the credit union cannot repay deposits because of its financial circumstances, and has no current prospect of being able to do so. For more information on FSCS, please visit www.fscs.org.uk
3. Hartlepool Credit Union Limited operated from 3-4 Avenue Road, Avenue Parade, Hartlepool, County Durham TS24 8BB.
Tel: 020 375 8640 or 07584 171973