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 nescu@geoffreymartin.co.uk  

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