FSCS steps in to help credit union savers in Edgbaston

The Financial Services Compensation Scheme (FSCS) is stepping in to protect members of Rotton Park and Winson Green Credit Union Ltd.

FSCS declared the organisation ‘in default’ on Monday 3rd March and has already processed the first claims from customers of the credit union based in Edgbaston, Birmingham.

The credit union got into financial difficulty and the Financial Services Authority (FSA) restricted its permissions to lend money. The organisation was referred to FSCS and, following investigations into the credit union’s solvency; FSCS has now declared it in “default”. This means that the credit union is unable to pay claims against it.

There are approximately 610 members of Rotton Park and Winson Green Credit Union. FSCS expects the value of claims to reach about £300,000.

Jonathan Clark, FSCS Director of Claims, comments: “FSCS performs a vital role in protecting consumers and maintaining confidence in the financial services sector. We have stepped in to help members of this credit union and are doing everything possible to ensure they get compensation for their lost savings fast. We have a very good record of processing deposit claims quickly, which the recent collapse of the Streetcred Credit Union in Rochdale highlighted. We process more than 94% of all credit union claims in a month or less.”

Rotton Park and Winson Green customer Janet Haley from Birmingham comments: “I am so glad the FSCS has stepped in to help people like me who had money in the credit union. I was worried that my money would be gone forever but thankfully FSCS has now been able to give it back to me. I’m sure there will be a lot of other grateful customers who would have lost savings if it had not been for the compensation scheme.”

FSCS provides a safety net for consumers who have claims against FSA regulated firms that are unable, or unlikely to be able, to pay them (described by FSCS as being “in default”). For deposit claims, FSCS can pay compensation at the level of 100% of the first £35,000 of loss per person.

FSCS has sent application forms to all the members of the credit union affected, to enable them to claim compensation from FSCS. Members who have not received an application form from FSCS should contact our Customer Services Team on Tel. 020 7892 7300.

The full name and address of the credit union is listed below:

Rotton Park & Windsor Green Credit Union Limited, 260 Dudley Road, Birmingham, West Midlands, B18 4HL

For more information about FSCS see Notes to Editors section or visit fscs.org.uk