InvestmentsJun 17 2013

FSCS proved prescient as £400k credit union defaults

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Portadown-based Carleton Credit Union has been declared in default by the Financial Services Compensation Scheme.

The FSCS has stepped in to protect about £390,000 in deposits belonging to the approximately 600 members of Carleton Credit Union Limited after it went into default on 14 June.

Earlier this month (7 June) the FSCS issued an alert on its website saying it was aware of the stricken credit union and would stand by to help if it was declared in default.

Carleton Credit Union has now become the eighth credit union to collapse this year and the 20th to collapse in two years.

The FSCS protects up to £85,000 of savings or £170,000 for joint accounts.

Kate Bartlett, operations director for FSCS, said: “FSCS is protecting Carleton Credit Union Limited members.

“We’re here for you and we’re ready to help. Your savings are safe and we will get them back to you within the next week. And the process is automatic so you won’t have to apply for our protection.”