London Community Credit Union Limited declared in default: FSCS to protect its 18,335 members

The Financial Services Compensation Scheme (FSCS) has stepped in to protect the members of London Community Credit Union Limited (LCCU) which has stopped trading and is now in default. 

FSCS expects the total compensation for LCCU to be around £15.4 million. Most of the 18,335 members will receive their compensation from FSCS within seven working days.

Members with a valid email address registered to their LCCU account can request their payment from FSCS either by cheque or direct bank transfer via the online FSCS Payments Portal. Members will receive an email from FSCS inviting them to use the portal if they are eligible.

Members who don’t receive an email from FSCS, or are unable to use the FSCS Payments Portal before it closes, don’t need to do anything. FSCS will automatically send a cheque for their payment in the post within seven working days. There is no need to contact FSCS. 

Anyone who believes they still have money in an account with LCCU but has not received an email from FSCS inviting them to use the portal, or a compensation cheque from FSCS within seven working days, should contact the Joint Administrators, James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited at Third Floor, One Park Row, Leeds, LS15 5HN. 

Sarah Marin, Chief Customer Officer at FSCS said: “We want to reassure customers of London Community Credit Union that their money is safe. 

FSCS protects people’s savings up to £85,000 and we’re committed to making sure customers can access their money and get back on track as quickly as possible when a credit union goes out of business.

Customers with a valid email address registered to their account may be able to use our online Payments Portal to request a faster payment from FSCS by direct bank transfer. Customers who don’t receive an email from FSCS don’t need to do anything, we’ll send them their payment by cheque within seven working days.” 

A dedicated page on the FSCS website includes questions and answers, which may be useful for members of LCCU.

For more information on how FSCS can protect people with current or savings accounts in credit unions, banks and building societies, or for information on the FSCS Payments Portal please visit the FSCS website and our ‘what we cover’ page.

For any questions about LCCU, contact the Joint Administrators, James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited at Third Floor, One Park Row, Leeds, LS15 5HN.  

Media enquiries 

Email: publicrelations@fscs.org.uk 

Contact: Farah Baldock