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

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.