North East Lincolnshire Credit Union Limited goes out of business: FSCS protects over 600 members
28th November 2016
The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of North East Lincolnshire Credit Union Limited, which has stopped trading and is now in default. This means it cannot re-pay deposits of just over £200,000 to 612 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. Members with up to £1,000 in their account will receive a letter to get the cash over the counter at their local post office. Anyone with more than £1,000 will receive a cheque for their balance direct from FSCS.
Mark Oakes, Head of Communications at FSCS, said:
“We are protecting members of North East Lincolnshire Credit Union Limited. You should get your money back within the week. The process is automatic too, so you won’t have to apply for compensation. Savings are protected up to £75,000 (see note 2) and joint accounts are covered for up to £150,000.”
FSCS has come to the aid of more than 4.5m people since 2001, paying out over £26bn in compensation when authorised financial services firms fail.
Any queries about North East Lincolnshire Credit Union Limited can be directed to the administrators; Leonard Curtis,Tower 12, 18-22 Bridge Street, Spinningfields, Manchester M3 3BZ; tel. 01282 610635; email: firstname.lastname@example.org.
Notes to editors
- For more information on deposits protection please visit our questions and answers page.
- The Prudential Regulation Authority is consulting on resetting the FSCS deposit protection limit next year to £85,000 (the limit is currently £75,000). That’s the equivalent of €100,000, which is the limit across the European Union. At the default date, the largest single account balance held at North East Lincolnshire Credit Union Limited was just over £5,000.
- North East Lincolnshire Credit Union Limited was declared in default on 28 November 2016 with 612 members and £201,000 held in deposit accounts.
- 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.
- 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.