PARKHEAD CREDIT UNION DEFAULTS – BUT PEOPLE REASSURED MONEY IS ‘SAFE’

For immediate release:

PARKHEAD CREDIT UNION DEFAULTS – BUT PEOPLE REASSURED MONEY IS ‘SAFE’

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Parkhead Credit Union in the East End of Glasgow, which has stopped trading and is now in default.

With the failure of the Credit Union, it is no longer in a position to repay deposits to its members.

Rutherglen MSP Clare Haughey has been contacted by the FSCS to advise that some of her constituents are customers, however the FSCS have added that they will “compensate the vast majority” of constituents who were members of the Glasgow-based Credit Union “within seven days”.

Using the Credit Union’s records, FSCS will send payments out automatically, and therefore customers are advised that they do not need to do anything.

FSCS expects the total pay-out for the credit union’s 2,523 members to be over £1.68m.

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 a balance of £1,000 will receive a cheque for their balance direct from FSCS.

FSCS protects up to £85,000 of savings – double that for joint accounts – and has come to the aid of more than 4.5m people since 2001, while paying out over £26bn in compensation.

Alex Kuczynski, Chief Corporate Affairs Officer at FSCS, said:

“Everyone needs to know their money is safe and we have just increased our limits for the wide range of products and services that we cover. As well as for claims against a credit union, bank or building society, customers can now be assured that if they lose money as a result of the failure of an authorised financial services firm such as their investment or mortgage adviser, or debt management provider, that FSCS provides a higher level of protection up to £85,000 per person.”

Clare Haughey MSP is encouraging constituents who are affected to contact her should they have any issues in retrieving their money.

Ms Haughey added:

“The FSCS has reassured me that my constituents’ money is safe. However, I fully appreciate that it may still be concerning for those affected. If you are a member of the Parkhead Credit Union and you require my assistance or are having issues in retrieving your money, then please feel free to get in touch with my office.

“I have been provided with a direct contact at the FSCS therefore I am more than willing to contact them on behalf of any affected constituent.”

Clare Haughey MSP can be contacted on 0141 561 5131, by email at clare.haughey.msp@parliament.scot, or at her constituency office – 85 Main Street, Rutherglen, G73 2JQ.

ENDS

Notes:

Further details on the announcement can be found on the FSCS website on the link below:

https://www.fscs.org.uk/news/2019/april/parkhead-credit-union-limited/

Below is the text of the email sent from the FSCS to Clare Haughey MSP:

Dear Ms Haughey,

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members of Parkhead Credit Union in the East End of Glasgow, which has stopped trading and is now in default. This means the Credit Union cannot repay deposits to its members based in your constituency.
I wanted to get in touch to reassure you that FSCS will compensate the vast majority of your constituents who were members of the Glasgow-based Credit Union within seven days. Using the Credit Union’s records, FSCS will send payments out automatically, customers don’t need to do anything.

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 a balance of £1,000 will receive a cheque for their balance direct from FSCS.

FSCS protects up to £85,000 of savings – double that for joint accounts – and 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 the credit union’s 2,523 members to be over £1.68m.
Please see our website announcement for more details.

Should you wish to find out more about our role or if any of your constituents have concerns about this then please do not hesitate to get in touch.

Yours sincerely,

*********
Communications Assistant
Financial Services Compensation Scheme

 

Date published: 3rd April 2019

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