The Financial Services Compensation Scheme is preparing to protect more than 1200 members of two credit unions that recently became insolvent.
FSCS has started processing claims for customers of Caia Park Credit Union Limited in Wrexham and Edmonton Credit Union Limited in Edmonton, with the first claim on Edmonton paid one day after it was declared in default.
There are approximately 1,070 members of Edmonton Credit Union and the FSCS says it is expecting between 800 to 900 claims to be made. Caia Park Credit Union is considerably smaller with just 165 members.
FSCS chief executive Loretta Minghella says the FSCS performs a vital role in protecting consumers and maintaining confidence in the financial services sector.
She says: “We have stepped in to help members of these two credit unions and have already made the first payment. FSCS has a very good record of processing deposit claims quickly, which the recent collapse of the Streetcred Credit Union in Rochdale highlighted. We paid the first claims only two days after declaring the credit union in default.
“FSCS generally pays 94 per cent of all credit union claims within four weeks of receiving an application form. We are doing everything we can to ensure members of these credit unions get compensation for their lost savings fast.”