FSCS to Credit Union Members: “You’re Protected”
Help is on the way for 703 members of a Liverpool credit union that went bust today, the Financial Services Compensation Scheme (FSCS) has assured.
The FSCS is pulling up its sleeves to protect members of the Waltonian Credit Union, saying members will get their money back within seven days.
Waltonian has about £100,000 of members’ money on deposit. FSCS is working with the credit union to get the information needed to quickly compensate credit union members.
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.
In similar cases before, the FSCS has paid out credit union members within two days. When the Southsea Mortgage and Investment Company Ltd failed, FSCS sent payments the day after.
Members of the Waltonian Credit Union will get compensation of up to £85,000 each without having to apply for FSCS protection. Once FSCS has the information it needs about each member’s account, it will send them their payments automatically.
Since 2001, FSCS has paid out more than £26bn and protected more than 4.5m people.