Thousands of North Yorkshire Credit Union members, which went bust yesterday, will get their money back within the next week, says the Financial Services Compensation Scheme (FSCS). It’s stepping in to protect members of the credit union which has locations throughout Yorkshire.
FSCS protects consumers when authorised financial services firms fail. It has protected more than 4.5m people and paid out more than £26bn in compensation since 2001. It is pledging to pay back the credit union’s members within seven days. And it won’t take long. On average FSCS pays out in a few days.
The FSCS process is automatic. Members of the credit union will not need to lift a finger to get their money back. FSCS will use the credit union’s records to automatically send payments to members. FSCS protects savings up to £85,000.
People with less than a thousand pounds will receive a letter to get cash over the counter at the Post Office. Anyone with more than this will receive a cheque. This gives people their cash back quickly and gives them the most options for depositing it elsewhere, FSCS says.
About 5,000 savers have some £1.9m in North Yorkshire Credit Union.
Kate Bartlett, Director of Operations, said:
FSCS is protecting members of the North Yorkshire Credit Union. There is no cause for concern. We will get your savings back to you within one week. And you won’t need to lift a finger because the process is automatic.