Hull East of the River Credit Union Members to Receive Compensation Within the Next Week
Members of Hull East of the River Credit Union Limited can expect to receive compensation from the Financial Services Compensation Scheme (FSCS) in the next seven days. The credit union was declared in default on 16 January 2012.
The FSCS said it is working with the credit union to get the information it needs to pay back depositors quickly, and will aim to pay compensation to the vast majority of members within seven days. Any remaining claims, which are expected to be more complex, will be paid by the FSCS within twenty working days.
In the case of recent credit union failures, the FSCS has paid the vast majority of people compensation within two or three days. When the Southsea Mortgage and Investment Company (a bank) went bust in September 2011, cheques were sent the day after the failure.
Hull East of the River Credit Union Limited has approximately 560 members with accounts totalling some £94,170. Declaring the credit union in default means the Scheme is satisfied it is unable, or likely to be unable, to pay back its members’ deposits.
Members of the credit union will be entitled to compensation of up to £85,000 each, and will not need to complete an application form to make a claim.
Once the FSCS has the information it needs about each member’s account, it will make compensation payments automatically. In most cases, compensation will be paid by cash over the counter through Post Offices for amounts under £1,000 and by cheque for anything above that figure.
The FSCS will provide a further update on its website by 23 January 2012.