Payments have been issued to members of a defunct credit union in Cumbria which collapsed earlier this month.
The Financial Services Compensation Scheme (FSCS) moved to ease concerns of the Millom & District Credit Union yesterday by confirming that money had been sent to some 530 members who had their cash on deposit with the union at the time of its collapse.
The FSCS was quick to move following the credit union’s announcement that it was to cease trading as a result of liquidation on 15 May 2013.
Kate Bartlett, director of operations at the FSCS, said this was another example of the FSCS stepping in quickly when needed.
She explained: “[The] FSCS protects people when authorised financial services firms go bust. So I’m pleased to confirm FSCS payments have now been made to members of the Millom & District Credit Union. It is good news for their members.”
Credit union records show members of the credit union had around £235,000 on deposit. People with less than a thousand pounds received a letter to get cash over the counter at their Post Office. Anyone with more than this received a cheque.
FSCS protects savings up to £85,000, which covers about 98% of people. Since 2001, FSCS has protected more than 4.5m people and paid out more than £26bn.