UK FSCS steps in to protect members of failed East London Credit Union

Maria Nikolova

The Scheme expects the total payout for East London Credit Union Ltd to be just over £2.25 million.

The UK Financial Services Compensation Scheme (FSCS) has earlier today announced that it is stepping in to protect the members of East London Credit Union Ltd, trading as Waltham Forest Community Credit Union. The firm has stopped trading and is currently in default.

The Scheme says it will compensate within seven days the bulk of the 5,500 members of the credit union. Using East London Credit Union Ltd’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.

According to the Scheme, the total payout for East London Credit Union Ltd to be just over £2.25 million.

Caroline Rainbird, Chief Executive of FSCS, said:

“All members of the credit union need to know that their money is safe and about the safeguards that are in place. Their savings are protected up to £85,000, and joint accounts are covered for £170,000.

Queries about East London Credit Union Ltd can be directed to Stephen Cork of Cork Gully LLP, who has been appointed as liquidator. The liquidator can be contacted by telephone in the first instance on 0333 210 1548. The postal address for the administrators is East London Credit Union Ltd c/o Cork Gully LLP, 6 Snow Hill, Farringdon, London EC1A 2AY, and the email address is [email protected]

Let’s recall that, according to FSCS’s 2018/19 Annual Report, the Scheme paid a total of £473 million in compensation to 425,760 customers of failed firms during 2018/19.

Read this next

Digital Assets

FTX Japan has until March to return customer assets

The Kanto finance bureau of Japan’s Ministry of Finance (MoF) said it will extend its business suspension order for FTX Japan, the Japanese arm of the beleaguered crypto exchange

Executive Moves

Johan Wiese replaces Richard as director of IG South Africa

IG Group, Europe’s largest online trading platform, has relocated its Finance Chief Operating Officer (COO) Johan Wiese to join its South Africa business as a director.

Digital Assets

Nexo continues European expansion with Polish licence

Crypto lender Nexo said today that it had been registered as a virtual currency operator with the Ministry of Finance in Poland, which enables its European-based entity to provide services to the country’s residents lawfully.

Digital Assets

Wirex expands crypto lineup to 130 tokens

Payment and crypto wallet provider Wirex has listed 52 new tokens on their app, bringing the total number of supported digital assets to 130, alongside 13 fiat currencies.

Executive Moves lures IG’s long-serving exec Greg Adams

Multi-licensed online brokerage group has appointed Greg Adams, who spent the bulk of his two-decade career at IG Group, as its newest head of risk.

Digital Assets

Farcana and Dravus join forces to line up sustainable mining power sources

As a result of growing ecological awareness, the sector’s top companies have been working to achieve effective cryptocurrency mining while still being energy-efficient: e.g. using mining facilities fueled by renewable power and located in colder regions to lower heat-dissipation costs.

Retail FX

Vantage to expand swap-free trading offering after savings of $1 million in gold XAUUSD

The swap-free product enhancement was designed to provide greater convenience for gold XAUUSD traders. Clients are not charged overnight fees when trading across all trading accounts, including on the Vantage App, regardless of trade size.

Digital Assets

Bosonic launches Cross Custodian Net Settlement to further eliminate settlement risk

Bosonic has announced the go-live of Cross Custodian Net Settlement (CCNS) in which trades in USDC and ETH were executed, cleared, and settled atomically between two digital asset custodians, First Digital in Hong Kong and Propine in Singapore.

Industry News

IntraFi taps Broadridge to offer loans to costumers of brokers, advisors, and RIAs

“Broadridge’s partnership with IntraFi expands the availability of securities-based lending to previously underserved parts of the market — community and regional banks, independent broker-dealers, and unaffiliated advisors and RIAs.”