RegulationApr 24 2013

FSCS to pay out as third credit union collapses in 2013

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Marches Credit Union has become the latest credit union to be declared insolvent, marking the third failure in the sector in 2013.

The Financial Services Compensation Scheme has told customers of the Kingston, Herefordshire-based credit union that most will be able to get their savings back within days.

Approximately 350 people have a total of about £160,000 deposited with the union. People with less than a thousand pounds will be instructed to collect their money from a Post Office. Anyone with more than this up to a limit of £85,000 will receive a cheque.

Marches is the third credit union to go into administration this year, following the collapse of Bristol-based Severn Four Credit Union in March and the Cornwall and Isles of Scilly Credit Union in February.

Last week (18 April) the Department for Work and Pensions revealed the credit union industry would receive a cash injection of £38m from the government to help it “modernise and grow”.

Mark Neale, chief executive of the FSCS, said: “FSCS is protecting hundreds of Marches Credit Union members.

“You’re savings are safe and we will get them back to you within the next week. And you won’t need to lift a finger because our process is automatic.”