Dial-A-Cab Credit Union Limited
The Financial Services Compensation Scheme (FSCS) has announced the failure of Dial-A-Cab Credit Union Limited, based in London, which was declared in default on 4 September 2018.
Dial-A-Cab Credit Union Limited has been placed into Administration with Jo Milner and Stephen Cork of Cork Gully LLP appointed as Administrators.
This means the credit union can’t repay money to its 1,250 members. FSCS is stepping in to protect customers and return money to most members within our seven day target- covering up to £85,000 for individuals and up to £170,000 for joint accounts. We expect to pay over £21,000,000 to nearly all 1,250 customers within 7 days of the failure being declared.
What happens next?
Customers don’t need to do anything. FSCS is a free service and we’ll automatically return customers’ savings according to the information we receive from Dial-A-Cab Credit Union Limited. The information will detail customers’ individual balances at the date of Dial-A-Cab’s failure - 4 September, 2018.
We’ll contact you by post in an unmarked envelope. Customers with up to £1,000 in their account will receive a letter to get cash-over-the-counter from their Post Office. For balances over £1,000 you’ll receive a cheque. Customers who don’t have another bank account should open one as soon as possible to bank their cheque.
If you have a child with a Dial-A-Cab savings account we’ll send payment in their name. If an adult operates the account on a child’s behalf, we’ll make the cheque out in the child’s name and send it to the adult’s address (if the address was registered with Dial-A-Cab).
We aim to return customers’ money within 7 days from 4 September when we declared Dial-A-Cab in default. If a case is more complex we’ll settle claims within 20 working days.
If for whatever reason, you disagree with the amount we have paid, please contact the Administrators on 020 7268 2150 or email DACCU@corkgully.com and they’ll look at your query. Don’t return the payment to us unless you’re specifically asked to do so.
What if I was expecting a payment to my account?
Any payments transferred to your account after 4 September, won’t be added to your balance – the Administrators will deal with them. You can call them 020 7268 2150 or email DACCU@corkgully.com
What happens if my account balance exceeds FSCS’s £85,000 limit?
You'll be contacted directly by the Administrators with further details.
The £85,000 limit (or £170,000 for joint accounts) is the maximum compensation we’re allowed to pay as set under our Deposit Protection Rules by the Prudential Regulation Authority (PRA).
However you may be eligible to make a temporary high balance claim with us. The temporary high balance would need to have been in your account for no more than six months before Dial-A-Cab’s failure on 4 September and relate to certain life events. You would need to provide evidence to us to support any claim.
You can find further details on temporary high balances here.
What happens to my account or any loans I had with Dial-A-Cab?
Any account you held with Dial-A-Cab will no longer operate. So if your salary and benefits are paid into your account, you’ll need to open one elsewhere – and tell your employer or the Department for Work and Pensions.
Members/junior depositors who wish to open a new credit union account have the opportunity to do so with alternative credit unions. The website https://www.findyourcreditunion.co.uk/ may be of help in seeing available options.
If you have any payments coming into your account by standing order you should cancel them also as no further money will be credited to your savings account. You can cancel standing orders at any branch of your bank or building society, over the phone or by secure online banking. However, you will need to give your bank/building society a couple of days’ notice before the payment is due to come out of your account.
If your standing order is for a loan repayment though, don’t cancel it. Any loan agreement you had with Dial-A-Cab will remain in place and you must maintain your repayments as originally contracted. The Administrators will manage future loan repayments and they will contact you about this.
If you made payments covering both loans and savings then the Administrator can advise you of the net payment you need to make each month for your loan so you don’t fall into arrears. For further information about your loan, please call 020 7268 2150 or email DACCU@corkgully.com
Do I need to tell FSCS if I recently changed my name or address?
We’ll send any payment to the name and address that Dial-A-Cab Limited held on their database.
For any name change you’ll need to provide an original document or certified copy of an official document showing your change of name, for example a marriage certificate or deed poll.
For any change of address, if you didn’t tell Dial-A-Cab of your address change or told them but received no confirmation that they updated their records, we’ll need to see evidence of the address change. This can be through a document such as a council tax bill, utility bill (but not mobile phone bill), or benefits entitlement letter – the letter must be less than 3 months old.
Please contact the Administrators on 020 7268 2150 or email DACCU@corkgully.com with evidence of your change of name or address. Once confirmed they’ll instruct us to make payment in your new name or to your new address as appropriate.
I’m the executor of a depositor who has recently died. Do I need to contact FSCS?
If the estate has already received cash over the counter, or banked the cheque payment, you don’t need to do anything. If the estate hasn’t received the payment, you’ll need to provide at least one proof of identity in the form of the Grant of Probate or Letters of Administration. If neither is available you'll need to provide a will and death certificate.
Please provide the relevant document to the Administrators who you can call on 020 7268 2150 or email DACCU@corkgully.com. The Administrators will then contact us so we can arrange payment.
Who can I contact if I need more help?
You can direct any further questions about Dial-A-Cab Credit Union Limited to Jo Milner and Stephen Cork of Cork Gully LLP who are the joint administrators. You can call them on 020 7268 2150 or email DACCU@corkgully.com.
For further information on what FSCS protects click here.