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FSCS protecting members of Carleton Street Credit Union, Northern Ireland

Compensation on the way for many hundreds of savers

The Financial Services Compensation Scheme (FSCS) is stepping in to protect about 600 members of Carleton Street Credit Union savers after it went bust recently (14 June 2013). The credit union is based in Tandragee, Co Armagh.

The compensation scheme is pledging the overwhelming majority of savers will get their money back within seven days. People will not need to even lift a finger to get their savings back.  Using credit union records, the FSCS will automatically send payments to members of the credit unions.

Some 600 people have about £390,000 with Carleton Street Credit Union. People with less than a thousand pounds will receive a letter to get cash over the counter at their Post Office. Anyone with more than this will receive a cheque.
 
FSCS protects up to £85,000 of savings or £170,000 for joint accounts. It has come to the aid of more than 4.5m people since 2001 while paying out over £26bn in compensation.

Kate Bartlett, Operations Director for FSCS, says help is on the way.  “FSCS is protecting Carleton Street Credit Union members. We’re here for you and we’re ready to help.  Your savings are safe and we will get them back to you within the next week. And the process is automatic so you won’t have to apply for our protection. The FSCS guarantees up to £85,000. That will protect every member of the credit union.”

Financial services firms fund the FSCS through a compulsory annual levy.  It protects deposits, insurance and investments when authorised firms go bust. It has the most wide ranging protection of any scheme in the world.

Northern Ireland credit unions came under FSCS protection on 31 March 2012.

For more information visit our Carleton Street Credit Union Q&As

We also have a short video explaining how FSCS can help when your credit union goes out of business.