West Wales Credit Union Limited goes out of business: FSCS to protect 1,700 members

27th September 2017

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of West Wales Credit Union Limited; which has stopped trading and is now in default. This means it cannot re-pay deposits to its 1,700 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.

For holders of a Child Trust Fund account with West Wales Credit Union Limited, the process for FSCS to reimburse savings is different to that for other account holders. Payment can only be made to an alternative Junior ISA provider rather than returned directly to the account holder. The administrators (PKF Geoffrey Martin & Co Limited) will shortly be writing to the registered holders of Child Trust Fund accounts with West Wales Credit Union with further information about this.

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 West Wales Credit Union members will be over £925,000.

Mark Oakes, Head of Communications at FSCS, said:

“We are here to protect members of West Wales 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 West Wales Credit Union Limited can be directed to the administrators, Dina Devalia and Peter Hart of PKF Geoffrey Martin & Co Limited by post; 1 Westferry Circus, Canary Wharf, E14 4HD; telephone 0207 495 1100 or email at wwcu@geoffreymartin.co.uk.   

Notes

  • For more information on deposits protection please visit our questions and answers page.
  • West Wales Credit Union Limited was declared in default on 27 September2017 with 1,700 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. 

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.
  • Investment

    a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up).