Plough & Share Credit Union Limited goes out of business: FSCS to protect 2550 members
7th June 2017
The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Plough & Share Credit Union Limited, which has stopped trading. The credit union is now in default. This means it cannot re-pay deposits to its 2,550 members.
FSCS will compensate the vast majority of members within seven days. The scheme will use the credit union’s records to automatically send payments out to them.
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 £85,000 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. FSCS expects the total pay-out for Plough’s members will be more than £1.1 million.
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 Plough & Share Credit Union Limited can be directed to the administrators, Jo Milner and Stephen Cork of Cork Gully LLP by post; 52 Brook Street, London W1K 5DS, via telephone on tel. 0333 210 0027 or by email: Plough@corkgully.com
- For more information on deposits protection please visit our questions and answers page.
- Plough & Share Credit Union Limited was declared in default on 6 June 2017 with 2550 members
- 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.