10th August 2016
The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Boscombe-based Coastal Credit Union Ltd, which has stopped trading and is now in default. This means it cannot re-pay deposits of more than £1.1m to around 5,200 account-holders.
The vast majority of members will be compensated within seven days, as FSCS will send cheques or money orders to them, using the credit union’s records.
Members with up to £1,000 in their account will receive a letter and money order, to get the cash from a local post office. Anyone with more than £1,000 will receive a cheque for their balance direct from FSCS.
Mark Oakes, Head of Communications at FSCS, said:
“We are protecting members of Coastal Credit Union Ltd. You should get your money back within a week. The process is automatic, too, so you won’t have to apply for compensation. Savings are protected up to £75,000, and joint accounts covered for £150,000.”
FSCS has come to the aid of more than 4.5m people since 2001, paying out over £26bn in compensation, when firms offering financial services have failed.
For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit https://protected.fscs.org.uk.
Coastal Credit Union Ltd operated from 531/533 Christchurch Road, Boscombe, Bournemouth BH1 4AG.