Credit unions


FSCS will usually be notified by the UK regulator that a credit union is insolvent. FSCS can pay compensation for financial loss of up to £85,000* if a credit union is unable to pay back deposits it owes to its members.

 

How we handle claims for compensation against a credit union

  1. Before FSCS can pay claims for compensation it must be satisfied that the credit union is unable to pay back money it owes to its members (described by us as being "in default"). We look at the credit union's records to help us decide this. A declaration of default by FSCS opens the way for members of the credit union to be paid compensation.
  2. Members of the credit union will not need to apply for compensation. FSCS will send their compensation to them automatically.
  3. FSCS will aim to pay compensation in the vast majority of cases within seven days, and pay any remaining claims, which are likely to be more complex, within twenty working days.

If you think you have a claim against a credit union

If you think you have a claim against a credit union but are not contacted, or you are worried about what is happening with your claim, please contact us.

We will usually pay compensation by cheque or cash over the counter through Post Offices.

You may also find our Questions and Answers section helpful.

*From 3 July 2015, FSCS will provide a £1 million protection limit for temporary high balances held with your bank, building society or credit union if it fails. Read our Q&As about temporary high balances for more information.


The FCA

The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).

The FOS

The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Deposit Q & As

The answers to our the most frequently asked questions regarding Credit Unions, Banks, and Building Societies.
 

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.