Credit union members to get FSCS pay out following default

The Financial Services Compensation Scheme says members of Handsworth Breakthrough Credit Union can expect to receive compensation within the next week.

A notice on the FSCS website states the credit union was placed into default yesterday meaning it was “unable, or likely to be unable, to pay back its members’ deposits.”

Handsworth has around 365 members with accounts totalling £206,000 with members of the union entitled to compensation of up to £85,000 each.

The FSCS says it expects the majority of cases to be settled within the next seven days while more complex cases will be settled within 20 days.