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FSCS in £173,000 credit union bailout

FSCS in £173,000 credit union bailout

The Financial Services Compensation Scheme has stepped in to protect the members of Derby United Credit Union after it was placed into administration and ceased trading on 13 April 2015.

The credit union is based in Derby, East Midlands, has almost 500 members with some £173,000 in savings. The scheme says that the overwhelming majority of savers will get their money back within seven days.

Using credit union records, the FSCS will automatically send payments to members of the credit union. People with up to a £1,000 will receive a letter to get cash over the counter at their local Post Office and anyone with more than this will receive a cheque, direct from FSCS.

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The FSCS protects up to £85,000 of savings or £170,000 for joint accounts. It has helped more than 4.5m people since 2001 while paying out over £26bn in compensation.

Kate Bartlett, director of operations for FSCS, said: “FSCS is protecting Derby Credit Union 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 protection. FSCS guarantees up to £85,000. That will protect every member of Derby United Credit Union.”

donia.o’loughlin@ft.com