FSCS to protect 981 members of Whitmore Reans Credit Union Limited

22nd March 2016

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Wolverhampton-based, Whitmore Reans Credit Union Limited (Whitmore Reans). The credit union stopped trading and was declared in default on 21 March 2016. A default declaration means FSCS is satisfied that Whitmore Reans cannot repay deposits to its 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.

People with up to £1000 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 direct from FSCS.

FSCS protects up to £75,000 of savings (£150,000 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 at FSCS, said: “FSCS is protecting Whitmore Reans members. We’re here for you and we’re ready to help. Your savings are protected up to £75,000 (£150,000 for joint accounts) and you should get your money back within the week. The process is automatic too so you won’t have to apply for compensation.”

Further information

  • Please visit our questions and answers page on deposits.
  • Members wishing to open a new credit union account in the area can contact Wolverhampton City Credit Union Limited, 73 Worcester Street, Wolverhampton WV2 4LE.
  • Members with any queries can contact the administrators: Jo Milner and Stephen Cork of Cork Gully LLP, 52 Brook Street, London W1K 5DS. Email: WRCU@corkgully.com or 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.