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		<title>FSCS: News</title>
		<link>http://www.fscs.org.uk/news/</link>
		<language>en-us</language>
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				<title>No plans to change current investment limit of &#163;50,000</title>
				<link>http://www.fscs.org.uk/news/2010/september/no-plans-to-change-current-in-qhb885k7-3/</link>
				<description><![CDATA[Recent reports in the media have suggested that the FSCS plans to cut the compensation cover for investments. This is inaccurate. The FSCS has no plans to reduce compensation protection for investments as suggested, nor is it able to do so. The rules that the FSCS applies when assessing clams are made by the Financial Services Authority (FSA). These include rules that set the FSCS compensation limits. The FSCS cannot depart from these rules.
The FSCS compensation limit for investment claims is currently &#163;50,000 per person, per authorised firm. The European Commission is considering harmonisation of compensation limits across Europe to &#8364;50,000 for investment claims. This proposal is currently set out in a draft directive which is subject to debate amongst Member States.&#160; A final decision has not yet been made by the Commission. 
&#160;]]>
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				<pubDate>Tue, 21 Sep 2010 00:00:00 GMT</pubDate>
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				<title>Update for customers of Direct Sharedeal Limited</title>
				<link>http://www.fscs.org.uk/news/2012/may/update-for-customers-of-direct-fb0ag9yf/</link>
				<description><![CDATA[Paul Finn and Michael Field of Finn Associates were appointed as joint administrators of Direct Sharedeal Limited on 12 April 2011 and were subsequently appointed joint liquidators of the company on 12 April 2012. Direct Sharedeal Limited has now been declared in default for the purposes of FSCS, and FSCS is inviting claims against the firm. FSCS expects that some customers of the firm may have claims relating to either shares or contracts for difference (CFD) investments.
Any customer of Direct Sharedeal Limited who believes they may have a protected claim against the firm should contact FSCS&rsquo;s Initial Contact Team to request an FSCS claim form. FSCS will also be contacting all customers who have previously registered a claim with the firm&rsquo;s joint liquidators inviting them to make a claim with FSCS.
For investment claims against Direct Sharedeal Limited FSCS can pay up to &pound;50,000 in compensation per eligible claimant.
FSCS is still gathering the evidence it requires to support claims in relations to CFD investments, and will provide a further update on its website regarding this category of claim as soon as more information is available.]]>
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				<pubDate>Fri, 11 May 2012 00:00:00 GMT</pubDate>
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				<title>Speedy FSCS payout to members of Pallister Credit Union Limited</title>
				<link>http://www.fscs.org.uk/news/2012/may/speedy-fscs-payout-to-members-o-3fh6b7yv/</link>
				<description><![CDATA[Savers with Pallister Credit Union Limited have now had their savings back after the Financial Services Compensation Scheme (FSCS) acted quickly to make compensation payments.
FSCS aims to pay most savers within seven days of a bank, building society or credit union being declared in default. In the case of Pallister Credit Union Limited, compensation has now been paid in respect of the majority of claims within 2 days, and the FSCS expects to pay the remaining claims within 20 working days.
The FSCS has paid out just over &pound;98,000 in compensation to members of the credit union.]]>
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				<pubDate>Tue, 08 May 2012 00:00:00 GMT</pubDate>
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			<item>
				<title>Pallister Credit Union Ltd update</title>
				<link>http://www.fscs.org.uk/news/2012/may/pallister-credit-union-ltd-update/</link>
				<description><![CDATA[Members of Pallister Credit Union Ltd can expect to receive compensation from the Financial Services Compensation Scheme (FSCS) in the next seven days, after the credit union stopped trading on 1 May 2012.
The FSCS is working with the credit union to get the information it needs to pay back depositors quickly. The FSCS will aim to pay compensation in the vast majority of cases within seven days, and pay any remaining claims which are likely to be more complex, within twenty working days. FSCS has paid out credit union members within two days in recent cases. When the Southsea Mortgage and Investment Company Ltd failed, FSCS sent payments the next day.
Pallister Credit Union Ltd has just over 300 active members with accounts totalling some &pound;100,000. Declaring the credit union in default means FSCS is satisfied that the credit union is unable, or likely to be unable, to pay back its members&rsquo; deposits.
Members of the credit union will be entitled to compensation of up to &pound;85,000 each, and will not need to complete an application form to make a claim. Once FSCS has the information it needs about each member&rsquo;s account, it will make compensation payments automatically.
The FSCS will provide a further update on its website by 9 May 2012.]]>
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				<pubDate>Wed, 02 May 2012 00:00:00 GMT</pubDate>
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				<title>Update for customers of Pritchard Stockbrokers Limited</title>
				<link>http://www.fscs.org.uk/news/2012/may/update-for-customers-of-pritcha-0g8fd3yd/</link>
				<description><![CDATA[Pritchard Stockbrokers Limited went into administration on 9 March 2012.
FSCS is working with the Special Administrators, Mazars LLP, to determine the best process for ensuring customers of the firm receive compensation quickly. The Special Administrators will be contacting clients for them to agree their account balances, which is critical to paying compensation. FSCS will use these agreed balances to determine the compensation amounts people will receive, and is liaising with the Special Administrators to get this information as quickly as possible.
Any customer of Pritchard Stockbrokers Limited who believes they may have a protected claim against the firm should contact FSCS&rsquo;s Initial Contact Team.&nbsp;
FSCS will provide further updates on its website as soon as more information is available.

    Further information about FSCS
]]>
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				<pubDate>Wed, 02 May 2012 00:00:00 GMT</pubDate>
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				<title>First payments have been sent to MF Global account holders</title>
				<link>http://www.fscs.org.uk/news/2012/april/first-payments-have-been-sent-t-eerirtx6/</link>
				<description><![CDATA[FSCS has so far paid more than &pound;130,000 to customers of MF Global UK Limited. We will continue making payments as claimants return their applications forms and we assess their claims.
FSCS has now sent application forms for compensation to all known MF Global UK Limited account holders, and is urging any customers of the firm who have not yet done so to complete and return their application forms as soon as possible.
Customers should be aware that FSCS cannot process claims until claimants have also agreed their balances with KPMG, the special administrators of MF Global UK Limited. Once balances have been agreed, the special administrators will provide this information to FSCS, to allow FSCS to assess the claims and make payments to eligible claimants.
To ensure money is returned to customers as soon as practicable FSCS is making all compensation payments in British pounds (GBP), converting any US dollar balances provided by KPMG as at the date the firm failed. &nbsp;All payments are being made by cheque.
In some cases where positions were liquidated after 31 October 2011, customers of MF Global will receive two balances from KPMG to agree. Provided customers agree to both balances, interim distributions made by KPMG and payment by FSCS will be based on the lower of these two balances.
FSCS will provide any further updates on its website when it is in a position to do so.
Further information:

    Frequently asked questions about MF Global UK Limited
]]>
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				<pubDate>Thu, 19 Apr 2012 00:00:00 GMT</pubDate>
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				<title>CF Arch Cru customers a step closer to receiving compensation</title>
				<link>http://www.fscs.org.uk/news/2012/april/cf-arch-cru-customers-a-step-cl-gxv82hxn/</link>
				<description><![CDATA[FSCS has now decided how it will compensate consumers with eligible claims against independent financial advisers that are no longer trading in relation to CF Arch Cru funds.
FSCS has sought external expert advice on the residual value of the CF Arch Cru funds. FSCS is obliged to take this value into account when determining levels of compensation.
FSCS is satisfied that the funds have been valued on a reasonable basis. But, because of the nature of the underlying assets, there is uncertainty about the amounts investors will eventually get back through the wind-down process of the funds which is currently underway.
FSCS does not believe that investors should have to wait until that wind-down is complete to receive compensation. It will make interim payments now and then, if necessary, make top-up payments once the CF Arch Cru wind-down process is completed. It is currently expected that this will be in 2015. These interim payments will also take into account compensation due to consumers from the payment scheme administered by Capita Financial Managers Limited, announced in June 2011 (regardless of whether an investor has actually claimed or received this sum).
This approach means that, as soon as FSCS has assessed a claim and confirmed it to be eligible for compensation, claimants will receive a significant part payment to compensate them for their losses. Claimants may then be paid a further compensation payment in 2015 once their precise losses are confirmed.
Based on the expert advice FSCS has received, interim payments assume the value of a claimant's investment in a CF Arch Cru sub-fund on the basis of the most recently published net asset value for that sub-fund, plus a premium of 12%. This approach aims to maximise the immediate pay-out to investors while minimising the risk of FSCS paying too much compensation if the funds realise more than expected.
FSCS is now finalising the claims process and expects to start processing claims in April 2012. We will be contacting all claimants who have previously submitted claims with further details about the process during April.
Further information about the process is included in an updated Questions and Answers document.
See also:

    CF Arch Cru update (28 Feb 2012)
]]>
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				<pubDate>Tue, 03 Apr 2012 00:00:00 GMT</pubDate>
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				<title>Further update for customers of Worldspreads Ltd</title>
				<link>http://www.fscs.org.uk/news/2012/march/further-update-for-customers-of-5cmwcex7/</link>
				<description><![CDATA[The Financial Services Compensation Scheme (FSCS) is currently working with the Joint Special Administrators to determine the best process for ensuring eligible customers of Worldspreads Ltd receive compensation quickly.
FSCS is aware that the Joint Special Administrators will be making statements available to clients for them to agree their balances. FSCS will only use agreed balances to determine compensation amounts, and will work with the Joint Special Administrators to obtain this information as quickly as possible.
We will provide a further update shortly to outline the process we will use. There is no need to contact FSCS at this time, as we will contact you separately regarding your claim.]]>
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				<pubDate>Fri, 30 Mar 2012 00:00:00 GMT</pubDate>
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				<title>Norton Insurance Services Limited (including Norton Finance UK Limited)</title>
				<link>http://www.fscs.org.uk/news/2012/march/norton-insurance-services-limit-j32k19x7/</link>
				<description><![CDATA[The Financial Services Compensation Scheme (FSCS) is aware that Norton Insurance Services was put into administration on 7 February 2012. The firm was an insurance broker whose main focus was providing Payment Protection Insurance (PPI).
FSCS is close to finalising its investigations into how it may be able to help consumers that may have lost money through their dealings with the firm. We will publish a further update with more information shortly.
FSCS protection for insurance broking is 90% of any eligible claim with no upper limit.
More than 4.5m people have been protected by FSCS since 2001 when it was set up. It has paid out more than &pound;26bn in compensation in this time.]]>
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				<pubDate>Thu, 22 Mar 2012 00:00:00 GMT</pubDate>
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				<title>Worldspreads Ltd - update for consumers</title>
				<link>http://www.fscs.org.uk/news/2012/march/worldspreads-ltd-update-for-consumers/</link>
				<description><![CDATA[The Financial Services Authority (FSA) has announced that Worldspreads Ltd has entered the special administration regime. The Financial Services Compensation Scheme (FSCS) is aware of the situation with the firm and is working with the administrators, KPMG, to understand how the firm&rsquo;s failure might affect consumers and the role FSCS might play.
The FSCS protects consumers who lose money when authorised financial services firms go bust. It is liaising with the administrators and the FSA to get the information and data it needs to analyse potential claims under its rules.
Customers of the firm should contact the administrators for more information on the failure of the company and what it means for them. The number is 020 3284 8829.
FSCS Chief Executive Mark Neale says &ldquo;We are working closely with the administrators and the FSA to understand the scale of consumer losses and potential claims for the FSCS. We will do all we can to provide certainty to customers of the firm as soon as possible. There is no need to contact FSCS at this time. Please direct any enquiries to the administrator. We will publish an update on our website as soon as we are able to provide more information on the potential claims and the process we will use to settle them.&rdquo;
Since 2001, FSCS has protected more than 4.5m people and paid out more than &pound;26bn in compensation to UK consumers.]]>
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				<pubDate>Mon, 19 Mar 2012 00:00:00 GMT</pubDate>
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				<title>MF Global account holders will start to receive compensation imminently</title>
				<link>http://www.fscs.org.uk/news/2012/march/mf-global-account-holders-will-start-to-receive-compensation-imminently/</link>
				<description><![CDATA[The FSCS is finalising its pay-out process and is close to making its first compensation payments to customers of MF Global UK Limited.
The Scheme has now sent compensation application forms to all MF Global UK Limited joint account holders and private individuals who had not previously been contacted, and to corporate and trust account holders. This is in addition to the 4,000 plus private customers with individual accounts who had previously been sent application forms. Any customers who do not receive an application form by 15 March should contact the FSCS Initial Contact Team.
Customers should be aware that the FSCS cannot process claims until claimants have agreed their balances with KPMG, the special administrators of MF Global UK Limited. After this, the special administrators will provide agreed balances to FSCS, to allow FSCS to make payments to eligible claimants.
Where the balances may be subject to future review, FSCS expects to follow the administrators approach and adopt the lower of the alternatives at this stage.
The FSCS will continue to keep customers of MF Global UK Limited informed about its progress by providing a further update on its website when it is in a position to do so.

    Frequently asked questions about MF Global UK Limited
]]>
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				<pubDate>Mon, 05 Mar 2012 00:00:00 GMT</pubDate>
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				<title>CF Arch Cru update</title>
				<link>http://www.fscs.org.uk/news/2012/february/cf-arch-cru-update/</link>
				<description><![CDATA[Compensation for investors in Arch Cru is a step closer today (27 February 2012). The Financial Services Compensation (FSCS) has considered the role of some independent financial advisers (IFAs) in relation to the firm, and believes that eligible claims may exist.
FSCS has found some failed IFAs may be liable for losses suffered by consumers where mis-selling can be shown to have occurred.
FSCS&rsquo;s work to value the assets of the firm continues, including how the Scheme will calculate any compensation due to people.
The Scheme will update consumers in late March with more information about the application process for claims and how it will quantify claims.
Since 2001, FSCS has helped more than 4.5m people and paid out more than &pound;26bn in compensation when firms went bust.
Further information

    Q&amp;As about CF Arch Cru 
]]>
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				<pubDate>Tue, 28 Feb 2012 00:00:00 GMT</pubDate>
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				<title>Consumers could lose over &#163;12 million to claims management companies in next financial year</title>
				<link>http://www.fscs.org.uk/news/2012/february/consumers-could-lose-over-163-tehihgwm/</link>
				<description><![CDATA[A dramatic rise in the number of consumers making claims for mis-sold payment protection insurance (PPI) is likely over the next year, new figures from the Financial Services Compensation Scheme (FSCS) reveal.
In its recently released Plan and Budget: 2012/13, the FSCS assumes it will receive around 16,500 claims for mis-sold PPI from failed firms for the period. This confirms a trend for increasing volumes of PPI claims coming into the Scheme.
The news comes a week after FSCS research showed more than three-quarters of people use claims management companies to apply for FSCS compensation from failed firms. Figures from 2008 to 2011 show the average FSCS payment to consumers through claims management companies is &pound;4,534. With claims management companies taking up to 25% of the pay-out, the 16,500 potential claimants could pay more than &pound;12.6 million in 2012/13.
Consumers can claim compensation directly from the FSCS to ensure they receive their full entitlement. The Scheme, which is free to consumers, has helped more than 4.5 million people and paid out more than &pound;26 billion since 2001. Between 2008 and 2011, just over &pound;77.5 million of this total amount was for PPI claims. FSCS assumptions for claims volumes in 2012/13 alone suggest it could pay out around &pound;70 million in compensation for PPI claims.
Mark Neale, Chief Executive of the FSCS, said, &ldquo;The significant uplift in PPI claims shows no sign of slowing down. The amount consumers pay to claims management companies for handling their case is sizeable.
&ldquo;Claims management companies take a significant part of the possible pay-out and are no more likely to make a successful claim than consumers can on their own. People can save thousands by submitting their claims directly to the FSCS, rather than through a third party.
&ldquo;While it may seem reassuring to have someone else do the paperwork, consumers should not be daunted by the process of making a claim. Claiming compensation from the FSCS is free and simple. If consumers have any concerns there is always someone on hand to help.&rdquo;]]>
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				<pubDate>Sat, 11 Feb 2012 00:00:00 GMT</pubDate>
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				<title>MF Global joint account holders will be sent claims forms imminently</title>
				<link>http://www.fscs.org.uk/news/2012/february/mf-global-joint-account-holders-vrajmewg/</link>
				<description><![CDATA[The FSCS has sent compensation application forms to more than 4,000 private customers of MF Global UK Limited with individual accounts. This will allow them to make a claim for compensation.
The news follows the recent announcement by KPMG, the special administrators of MF Global UK Limited, that customers will start to receive dividend payments in relation to client money claims.
The FSCS continues to work with KPMG to obtain the required data relating to customers&rsquo; accounts, and is adopting a phased approach to mailing different categories of customer (such as individuals and trusts).
The Scheme will shortly start the next phase of its mailing programme. It will be sending application forms to joint account holders and private individuals who have not previously been contacted by FSCS by the end of this week. The FSCS expects to send application forms to corporate and trust account holders by the end of February.
When customers receive an application form they should complete it as fully as possible, and return it using the envelope provided with copies of any documentation if available. Customers with a private individual account with MF Global UK Limited, who have not yet received an FSCS application form should contact the FSCS Initial Contact Team.
Customers of MF Global UK Limited can expect to receive a letter from the special administrators by 31 March 2012 containing information about their account(s) with the firm. Customers should be aware that the FSCS cannot process claims until claimants have agreed their balances with the special administrators. After this, the special administrators will provide agreed balances to FSCS, to allow FSCS to make payments to eligible claimants.
The FSCS will continue to keep customers of MF Global UK Limited informed about its progress by providing a further update on its website when it is in a position to do so.
For investment claims, FSCS can pay up to &pound;50,000 in compensation per person, and will take into account any dividend payments made by the special administrators to customers when making compensation payments.

    Frequently asked questions about MF Global UK Limited 
]]>
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				<pubDate>Fri, 10 Feb 2012 00:00:00 GMT</pubDate>
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				<title>Over three quarters of PPI claims to FSCS made through claims management companies</title>
				<link>http://www.fscs.org.uk/news/2012/january/over-three-quarters-of-ppi-clai-gwakggww/</link>
				<description><![CDATA[The vast majority of consumers making claims for mis-sold Payment Protection Insurance (PPI) from failed firms have done so through claims management companies, new figures from the Financial Services Compensation Scheme (FSCS) reveal.
More than three-quarters of people claiming PPI compensation from the FSCS do so through a claims management company. These companies take a cut of the compensation, which can be up to 25% or more.
&nbsp;
The FSCS figures are based on analysis of PPI claims between 2008 and 2011. The Scheme, which is free to consumers, has helped more than 4.5 million people and paid out more than &pound;26 billion since 2001. Just over &pound;77.5 million of this total amount was for PPI claims.&nbsp; 
&nbsp;
Although the number of claims submitted directly to the FSCS more than doubled from 2010 to 2011, the number coming from claims management companies far outstrips the number of individual claims in both years by more than three to one. With the average pay-out to those going via a claims management company being &pound;4,534, a quarter of this is more than &pound;1,133. 
&nbsp;
Paying a third party to submit a claim to the FSCS does not significantly increase the chances of receiving compensation either. The analysis shows the number of successful claims made by individuals is almost the same as for those made by third parties. The uphold rate for claims made through third parties is just under 87%, compared with just over 83% for individuals. 
&nbsp;
Overall the total number of PPI claims for failed institutions has increased considerably in the past year, with 60% more people claiming compensation in 2011 compared to 2010. 
&nbsp;
Mark Neale, Chief Executive of the FSCS, said: &ldquo;Consumers should be aware claiming compensation from the FSCS is free and the process is not difficult. In these tough times people may well think they increase their chances of getting their money back but that is not necessarily the case. Of course, some people may prefer to pay someone to submit their claim for them. The choice is theirs and they should understand what they will get for their money. Claims management companies take a sizeable part of the possible pay-out and are no more likely to make a successful claim than consumers can on their own. 
&nbsp;
&ldquo;Each application is judged on its individual merits. Whether it is submitted by a claims management company or by an individual has no bearing on the likelihood of success. If people make the claim directly and it is successful, they receive the full payment, without having to share a big cut with a third party.
The PPI application process is simple. Once people complete their application form the FSCS will contact them if it needs any further information to process the claim. The FSCS has a dedicated phone line to help consumers with any queries they might have when making a direct claim. ]]>
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				<pubDate>Sat, 28 Jan 2012 00:00:00 GMT</pubDate>
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				<title>Speedy FSCS payout to members of Hull East of the River Credit Union Limited</title>
				<link>http://www.fscs.org.uk/news/2012/january/speedy-fscs-payout-to-members-o-uwunw3wh/</link>
				<description><![CDATA[Savers with Hull East of the River Credit Union Limited have now had their savings back after the Financial Services Compensation Scheme (FSCS) acted quickly to make compensation payments.
The FSCS aims to pay most savers within seven days of a bank, building society or credit union being declared in default. In the case of Hull East of the River Credit Union Limited, which was declared in default on 16 January 2012, compensation was paid in respect of the majority of claims within 4 days. Where possible, the FSCS expects to pay the remaining claims within 20 working days.
The FSCS has paid out a little over &pound;89,000 in compensation to members of the credit union.]]>
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				<pubDate>Wed, 25 Jan 2012 00:00:00 GMT</pubDate>
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				<title>&#163;41 million challenge: how can British lottery winners protect their jackpot?</title>
				<link>http://www.fscs.org.uk/news/2012/january/41-million-challenge-how-yt5v73wf/</link>
				<description><![CDATA[Millions dream of how a massive lottery win could change their life and allow them to buy anything they want. So Gareth and Catherine Bull, the British winner s of the Euro Millions lottery jackpot on Friday 20 January, will be the envy of the nation after scooping a mammoth &pound;41 million. But they will face an unusual problem, according to the Financial Services Compensation Scheme (FSCS).
Winning so much cash should make life easier but the FSCS says Mr and Mrs Bull face an unexpected conundrum&nbsp;- how to keep their money safe while working out what to do with it.
The FSCS protects up to &pound;85,000 of savings deposited in an authorised commercial bank, building society or credit union. Or it will cover up to &pound;170,000 for joint accounts per authorised institution. That means that the lucky winners will need nearly 240 joint-accounts, in separately authorised institutions, to remain within the limit.
Mark Neale, Chief Executive of the FSCS, said: &ldquo;In these tough times, it is vital to keep your money safe. And winning &pound;41 million means Mr and Mrs Bull face a problem many would love to have.
&ldquo;The FSCS protects your money in banks, building societies and credit unions authorised by the Financial Services Authority. People with large amounts of cash should remember to always try to keep within the &pound;85,000 FSCS deposit limit, or &pound;170,000 for joint accounts. To ensure their jackpot is safe, Mr and Mrs Bull should consider spreading their money around.&rdquo;
The FSCS, which is free to consumers, has helped 4.5 million people and paid more than &pound;26 billion in compensation since 2001.]]>
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				<pubDate>Tue, 24 Jan 2012 00:00:00 GMT</pubDate>
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				<title>Members of Hull East of the River Credit Union to receive compensation within the next week</title>
				<link>http://www.fscs.org.uk/news/2012/january/members-of-hull-east-of-the-riv-rnfmuwvw/</link>
				<description><![CDATA[Members of Hull East of the River Credit Union Limited can expect to receive compensation from the Financial Services Compensation Scheme (FSCS) in the next seven days. The credit union was declared in default today, 16 January 2012.
The FSCS is working with the credit union to get the information it needs to pay back depositors quickly, and will aim to pay compensation to the vast majority of members within seven days. Any remaining claims, which are likely to be more complex, will be paid by the FSCS within twenty working days.
In the case of recent credit union failures, the FSCS has paid the vast majority of people compensation within two or three days. When the Southsea Mortgage and Investment Company (a bank) went bust in September 2011, cheques were sent the day after the failure.
Hull East of the River Credit Union Limited has approximately 560 members with accounts totalling some &pound;94,170. Declaring the credit union in default means the Scheme is satisfied it is unable, or likely to be unable, to pay back its members&rsquo; deposits.
Members of the credit union will be entitled to compensation of up to &pound;85,000 each, and will not need to complete an application form to make a claim. Once the FSCS has the information it needs about each member&rsquo;s account, it will make compensation payments automatically. In most cases, compensation will be paid by cash over the counter through Post Offices for amounts under &pound;1,000 and by cheque for anything above that figure.
The FSCS will provide a further update on its website by 23 January 2012.]]>
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				<pubDate>Mon, 16 Jan 2012 00:00:00 GMT</pubDate>
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				<title>Speedy FSCS payout to members of Handsworth Breakthrough Credit Union Limited</title>
				<link>http://www.fscs.org.uk/news/2012/january/speedy-fscs-payout-to-members-o-nfxsquvv/</link>
				<description><![CDATA[Savers with Handsworth Breakthrough Credit Union Limited have now had their savings back after the Financial Services Compensation Scheme (FSCS) acted quickly to make compensation payments.
The FSCS aims to pay most savers within seven days of a bank, building society or credit union being declared in default. In the case of Handsworth Breakthrough Credit Union Limited, which was declared in default on 5 January 2012, compensation was paid in respect of the majority of claims within 4 days. Where possible, the FSCS expects to pay the remaining claims within 20 working days.
The FSCS has paid out a little over &pound;203,000 in compensation to members of the credit union.]]>
</description>
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				<pubDate>Fri, 13 Jan 2012 00:00:00 GMT</pubDate>
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				<title>New legislation allows credit unions to grow their membership</title>
				<link>http://www.fscs.org.uk/news/2012/january/new-legislation-allows-credit-u-fuv2ay2w/</link>
				<description><![CDATA[Changes to the Credit Union Act came into force yesterday (8 January), removing the requirements that place a restriction on credit union membership. The changes will not impact on the protection FSCS provides credit union members which will remain at &pound;85,000 per person.
Credit unions will still have a &lsquo;field of membership test&rsquo; to ensure that members have a common bond, but crucially credit unions will be able to provide services to a number of groups. This will allow them to offer membership to a wider range of people in the community.
The new legislation also means that for the first time, credit unions can provide services to businesses, community groups and social enterprises. They will also be able to offer interest on savings, instead of paying dividends to members and will be able to charge for additional services.
Mark Neale, FSCS Chief Executive says: &quot;Credit Unions are an integral part of our financial system and provide beneficial financial support to their members. These changes will strengthen credit unions by giving them the opportunity to expand and will make them more accessible to individuals in the community that may not otherwise have access to financial support.&quot;
For more information please see Association of British Credit Unions Limited&rsquo;s website or the full Legislative Reform.]]>
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				<guid>_fuv2ay2w</guid>
				<pubDate>Mon, 09 Jan 2012 00:00:00 GMT</pubDate>
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