Pallister Credit Union Members to Receive Compensation in 7 Days
Members of Pallister Credit Union Ltd will receive compensation from the Financial Services Compensation Scheme (FSCS) in the next seven days, after the credit union stopped trading on 1 May 2012.
The FSCS is working with the credit union to get the information it needs to pay back depositors quickly. The 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.
The FSCS has paid out credit union members within two days in recent cases. When the Southsea Mortgage and Investment Company Ltd failed, FSCS sent payments the next day.
Pallister Credit Union Ltd has just over 300 active members with accounts totalling some £100,000. Declaring the credit union in default means FSCS is satisfied that the credit union 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 FSCS has the information it needs about each member’s account, it will make compensation payments automatically.
The FSCS will provide a further update on its website by 9 May 2012.