Members of Hartlepool’s credit union are set to receive compensation payments totalling £400,000 after it collapsed due to a lack of funds.
Hartlepool Credit Union Ltd, which includes Moneywise Community Banking and operated from Avenue Road, has ceased trading after being declared in default meaning it cannot repay deposits to its 2,903 members.
But members’ savings up to £75,000 per person are protected by the Financial Services Compensation Scheme (FSCS).
It says the vast majority of members will be compensated within seven days without having to do anything.
The FSCS will use the credit union’s records to automatically send payments out to members.
People 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 that will receive a cheque for their balance direct from FSCS.
Mark Oakes, of the FSCS, said: “We are protecting members of Hartlepool Credit Union Limited.
“We’re here for you, and we’re ready to help. Your savings are protected up to £75,000, and joint accounts are covered for £150,000.
“You should get your money back within the week. The process is automatic, too, so you won’t have to apply for compensation.”
The FSCS expects the total pay-out for Hartlepool’s members to be more than £420,000.
The credit union provided services including free banking and savings accounts, low cost loans and Christmas saving clubs and hampers.
Administrators Cork Gully LLP of London have been appointed to collect assets and pay any creditors.
Any queries about Hartlepool Credit Union Limited can be directed to Jo Milner and Stephen Cork on 0207 2682150 or visit www.corkgully.com.