4th April 2018
The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of South Tyneside Credit Union Limited (trading as First For Money Credit Union), which has stopped trading and is now in default. This means the credit union cannot repay deposits to its 3,756 members.
FSCS will compensate the vast majority of members within seven days. Using the credit union’s records, FSCS will send payments out automatically.
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 South Tyneside Credit Union Limited members to be £1.6m.
Alex Kuczynski, Director of Corporate Affairs at FSCS, said:
“FSCS is here to protect members of South Tyneside Credit Union Limited (trading as First For Money Credit Union). Your savings are protected up to £85,000, and joint accounts are covered for £170,000. You should get your money back within seven days. 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 of South Tyneside Credit Union Limited can be directed to Dina Devalia and James Sleight of PKF Geoffrey Martin & Co who have been appointed as joint administrators.
You can contact the joint administrators by post; , PKF Geoffrey Martin & Co, 4 Carlton Court, Brown Lane West, Leeds, West Yorkshire, LS12 6LT; telephone 0113 244 5141 or email email@example.com