North East Scotland Credit Union goes out of business: FSCS to protect over 2700 members
27th February 2018
The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of North East Scotland Credit Union Limited, which has stopped trading and is now in default. This means the credit union cannot repay deposits to its 2783 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 North East Scotland Credit Union members to be £1.1m.
Alex Kuczynski, Director of Corporate Affairs at FSCS, said:
“FSCS is here to protect members of North East Scotland Credit Union Limited. 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 North East Scotland Credit Union Limited can be directed to Dina Devalia and Stephen Goderski of PKF Geoffrey Martin & Co who have been appointed as Joint Administrators.
You can contact the Joint Administrators by post; PKF Geoffrey Martin & Co, 1 Westferry Circus, Canary Wharf, London E14 4HD; telephone 0207 5162420 or email firstname.lastname@example.org
- For more information on deposits protection please visit our questions and answers page.
- North East Scotland Credit Union Limited was declared in default on 27 February 2018 with 2783 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.