WIREDGOV

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Yoker Credit Union Limited, which has stopped trading. The credit union is now in default. This means it cannot re-pay deposits to its 1200 members.

FSCS will compensate the vast majority of members within seven days without them having to lift a finger. The scheme will use the credit union’s records to automatically send payments out to them.

The process is easy: people with up to £1,000 in their account will receive a letter to get cash over the counter at their local Post Office. Anyone with more than this will receive a cheque for their balance direct from FSCS.

FSCS protects up to £85,000 of savings – double that for joint accounts. It has come to the aid of more than 4.5m people since 2001, while paying out over £26bn in compensation. FSCS expects the total pay-out for Yoker’s members will be more than £1.2 million.

Mark Oakes, Head of Communications at FSCS, said:

“We are protecting members of Yoker Credit Union Limited. We’re here for you, and we’re ready to help. Your savings are protected up to £85,000, and joint accounts are covered for £170,000. You should get your money back within the week. The process is automatic, too, so you won’t have to apply for compensation.”

For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit http://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/

Any queries about Yoker Credit Union Limited can be directed to the administrators, Andrew Poxon and Stuart Robb of Leonard Curtis by post; Third Floor, 2 West Regent Street, Glasgow G2 1RW, via telephone on tel.01282 610635 or by email: yokercu@leonardcurtis.co.uk.

Notes to editors

• For more information on deposits protection please visit our questions and answers page.
• Yoker Credit Union Limited was declared in default on 18 April 2017 with 1200 members
• FSCS is the UK's statutory compensation scheme for customers of authorised financial services firms. FSCS is funded by the financial services industry and protects investment business, deposits, home finance (mortgage) advice, and general insurance and insurance broking. FSCS can pay for financial loss if a firm cannot pay claims against it. We are independent and do not charge individual customers for using our service.
• Before FSCS can declare a credit union in default and pay compensation to its members, it must be satisfied the credit union cannot repay deposits because of its financial circumstances, and has no current prospect of being able to do so.