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Compensation pledge from FSCS

Savers expect £1.68m payout after credit union folds

Money - own picCustomers of a Scottish credit union are expecting a share of £1.68 million in compensation after it stopped trading.

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Parkhead Credit Union in the East End of Glasgow which is now in default.

FSCS said it will compensate the “vast majority” of the credit union’s 2,523 members within seven days. Using Parkhead Credit Union’s records, FSCS will send payments out automatically.

Members with up to £1,000 in their account will receive a letter to get cash over the counter at their local Post Office. Anyone with a balance of more than £1,000 will receive a cheque for their balance direct from FSCS.

FSCS protects up to £85,000 of savings – double that for joint accounts – and has come to the aid of more than 4.5m people since 2001, while paying out over £26bn in compensation. FSCS expects the total pay-out to be over £1.68m.

Alex Kuczynski, chief corporate affairs officer at FSCS, said: “FSCS is protecting the members of Parkhead Credit Union Ltd and helping them to get back on track. Our aim is for the vast majority of Parkhead’s customers to get their money back within seven days.

“Everyone needs to know their money is safe and we have just increased our limits for the wide range of products and services that we cover. As well as for claims against a credit union, bank or building society, customers can now be assured that if they lose money as a result of the failure of an authorised financial services firm such as their investment or mortgage adviser, or debt management provider, that FSCS provides a higher level of protection up to £85,000 per person.”

More information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit FSCS’s website is available here: deposit limits page.

Queries about Parkhead Credit Union can be directed to Dina Devalia and James Sleight of PKF Geoffrey Martin & Co., who have been appointed as joint administrators. The administrators can be contacted by telephone in the first instance on 0141 551 8387 or 0141 432 1703, or alternatively on 0113 244 5141.

The postal address for the joint administrators is Parkhead Credit Union Ltd c/o PKF Geoffrey Martin & Co Ltd, 3rd Floor, One Park Row, Leeds LS1 5HN, and the email address is parkhead@geoffreymartin.co.uk  

 



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