27th September 2017
The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of West Wales Credit Union Limited; which has stopped trading and is now in default. This means it cannot re-pay deposits to its 1,700 members.
FSCS will compensate the vast majority of members within seven days. The scheme will use the credit union’s records to automatically send payments out to them.
People with up to £1,000 in their account will receive a letter to get cash over the counter at their local Post Office. Anyone with more than this will receive a cheque for their balance direct from FSCS.
For holders of a Child Trust Fund account with West Wales Credit Union Limited, the process for FSCS to reimburse savings is different to that for other account holders. Payment can only be made to an alternative Junior ISA provider rather than returned directly to the account holder. The administrators (PKF Geoffrey Martin & Co Limited) will shortly be writing to the registered holders of Child Trust Fund accounts with West Wales Credit Union with further information about this.
FSCS protects up to £85,000 of savings – double that for joint accounts. It has come to the aid of more than 4.5m people since 2001, while paying out over £26bn in compensation. FSCS expects the total pay-out for West Wales Credit Union members will be over £925,000.
Mark Oakes, Head of Communications at FSCS, said:
“We are here to protect members of West Wales Credit Union Limited, and we’re ready to help. Your savings are protected up to £85,000, and joint accounts are covered for £170,000. You should get your money back within the week. The process is automatic too, so you won’t have to apply for compensation.”
For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit http://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/
Any queries about West Wales Credit Union Limited can be directed to the administrators, Dina Devalia and Peter Hart of PKF Geoffrey Martin & Co Limited by post; 1 Westferry Circus, Canary Wharf, E14 4HD; telephone 0207 495 1100 or email at email@example.com.