The Financial Services Compensation Scheme is to pay out £460,000 to compensate the 1,500 members of Bristol-based Severn Four Credit Union, after it became the latest in the sector to be declared in default.
Members of the credit unions will receive their money back within seven days of the company being declared in default, the FSCS said.
Those with less than £1,000 will receive a letter to get cash over the counter at the Post Office. Anyone with more than that amount will receive a cheque.
In February of this year the FSCS announced it would compensate 2,100 members of the Cornwall and Isles of Scilly Credit Union to the tune of £569,000 after it was also declared in default.
Kate Bartlett, director of operations at the FSCS, said: “The FSCS is ready to protect the credit union’s members.
“Up to £85,000 of your money is safe, so there is no reason to worry. You will have your savings back soon.”
