Staffordshire Credit Union Limited goes out of business: FSCS to protect over 1,000 members
18th September 2017
The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Staffordshire Credit Union Limited; which has stopped trading and is now in default. This means it cannot re-pay deposits to its 1,027 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 Staffordshire’s members will be just over £450,000.
Mark Oakes, Head of Communications at FSCS, said:
“We are here to protect members of Staffordshire Credit Union Limited, and we’re ready to help. Your savings are protected up to £85,000, and joint accounts are covered for £170,000. You should get your money back within the week. The process is automatic too, so you won’t have to apply for compensation.”
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 Staffordshire 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 0333 210 0027; or by email: firstname.lastname@example.org
- Since January 2011 (to June 2017) FSCS has declared 40 credit unions in default, eight of which were based in the West Midlands (excluding Staffordshire Credit Union Limited). The amount paid out for those eight credit unions totalled £3.4m and 6,700 customers were compensated.
- For more information on deposits protection please visit our questions and answers page.
- Staffordshire Credit Union Limited was declared in default on 18 September2017 with 1,027 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.