THE Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Essex Savers net Credit Union Limited; which has stopped trading and is now in default. This means it cannot re-pay deposits to its 5000 members.
Essex Savers had several offices in Thurrock since it was rolled out in the borough in 2011.
Thurrock Council has said it is aware of the situation and directed residents to the Essex Savers website.
FSCS will compensate the vast majority of members within seven days. Using the 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 more than this will receive a cheque for their balance direct from FSCS.
For holders of a Child Trust Fund account with Essex Savers net Credit Union Limited, the process for FSCS to reimburse savings is different to that for other account holders. Payment can only be made to an alternative Junior ISA provider. The administrators (CVR Global LLP) will shortly be writing to the registered holders of Child Trust Fund accounts with Essex Savers net Credit Union with further information about this.
FSCS protects up to £85,000 of savings per person – double that for joint accounts. It 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 for Essex Savers net Credit Union members to be £1.7m.
Mark Oakes, Head of Communications at FSCS, said:
“We are here to protect members of Essex Savers net Credit Union Limited, and we’re ready to help. Your savings are protected up to £85,000, and joint accounts are covered for £170,000. You should get your money back within the week. The process is automatic too, so you won’t have to apply for compensation.”
For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit http://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/
Any queries about Essex Savers net Credit Union Limited can be directed to the administrators, Kevin Murphy, Jason Maloney and Bai Cham of CVR Global LLP by post; c/o 7B Castlegate, York, YO1 9RN; telephone 01245 830520 or email at email@example.com