FSCS Vows Quick Aid for Tamworth Credit Union
The Financial Services Compensation Scheme has promised to take necessary and immediate measures to rescue 504 members of Tamworth credit union that went bust last week.
The FSCS is stepping in to protect members of the Tamworth Credit Union. The Scheme says members will get their money back within seven days.
Tamworth has about £130,000 of members’ money on deposit. FSCS is working with the credit union to get the information it needs to pay them back quickly. It pays the vast majority of claims within seven days. FSCS will pay any remaining claims which are likely to be more complex, within twenty working days.
Members of the Tamworth Credit Union will get compensation of up to £85,000 each. And they won’t have to apply for FSCS protection. Once FSCS has the information it needs about each member’s account, it will send them their payments automatically.
FSCS has paid out credit union members within two days in recent cases. When the Waltonian Credit Union failed in August, FSCS sent payments the day after it failed.
Since 2001, FSCS has paid out more than £26bn and protected more than 4.5m people.