South Tyneside Credit Union Limited (trading as First For Money Credit Union): FSCS to protect over 3,700 members

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 stcu@geoffreymartin.co.uk

Notes

  • For more information on deposits protection please visit our questions and answers page.
  • South Tyneside Credit Union Limited (trading as First For Money Credit Union) was declared in default on 4th April 2018 with 3,756 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, 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).