Credit union with thousands of customers goes bust

A LONDON-BASED national has gone bust, leaving 17,000 members without entree to their accounts - but savers volition get their currency back

The London Community Credit Union (LCCU), which served members crossed respective London boroughs, was placed into medication connected January 22.

Joint administrators James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited person present taken charge, confirming the co-operative has ceased trading.

Fortunately, there’s nary request for members to panic, arsenic extortion nether the Financial Services Compensation Scheme (FSCS) means everyone gets their savings back.

All accounts, up to the £85,000 bounds per individual, are afloat protected.

Savers volition person their money automatically wrong 7 moving days of the closure date.

Most members volition get an email from FSCS explaining however to petition their payment, which tin beryllium sent via cheque oregon slope transfer.

Those without email entree don’t request to interest – a cheque volition beryllium sent to their registered code without them having to assistance a finger.

LCCU was a fiscal co-operative helping radical successful boroughs similar Hackney, Tower Hamlets, and Islington prevention and get money.

Its abrupt closure volition travel arsenic a stroke to the section community, but administrators person stressed that enactment is disposable for anyone with questions.

For members who marque regular payments specified arsenic salaries, benefits, oregon rent into their accounts, there’s proposal connected however to acceptable up caller arrangements.

Borrowers are besides being contacted astir next steps for their loans.

Administrator James Sleight acknowledged the interaction of the collapse, saying: “This is, of course, hugely disappointing news for members and the section community.

"But I privation to reassure everyone that their wealth is safe, and each deposits volition beryllium returned successful afloat by the FSCS. Members don’t request to instrumentality immoderate enactment to get their savings backmost and volition perceive from america oregon the FSCS shortly.”

Members don’t request to instrumentality immoderate enactment to get their savings backmost and volition perceive from america oregon the FSCS shortly.”

While the FSCS and administrators are moving hard to guarantee a creaseless process, customers are being urged to ticker retired for scammers.

If anyone is contacted unexpectedly by idiosyncratic claiming to beryllium from the recognition national oregon FSCS, they should bent up and usage authoritative interaction details to check.

For further information, members tin sojourn the LCCU website, email the administrators astatine lccu@pkf-l.com oregon telephone

The FSCS besides has a dedicated portal to negociate payments and reply immoderate queries.

Is your wealth safe?

Your wealth is wholly safe.

Over 73 recognition unions person gone nether successful the past decade.

Matt Bland, caput of argumentation astatine the Association of British Credit Unions (Abcul), said recently: "We bash unluckily spot a fig of recognition unions fail each year. Typically the recognition unions that bash neglect are precise small, with a fewer 100 oregon possibly a 1000 radical utilizing them.”

But regulations are successful spot to enactment arsenic a information net.

Any eligible deposits you held with LCCU is protected by the UK’s deposit warrant scheme, the Financial Services Compensation Scheme (FSCS). As LCCU has present failed FSCS volition measurement successful to repay your money.

James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited are the appointed Joint Administrators.

They volition interaction you by station with documents astir the medication for your accusation only.

What to bash if you don't person different slope account

If you don’t person different slope account, it’s important to enactment quickly. You’ll request to unfastened an relationship with a bank, gathering society, oregon recognition national truthful your outgo tin beryllium processed, and you tin entree your funds.

For those who similar to enactment with a recognition union, you tin find accusation astir alternate options done the Association of British Credit Unions Limited (ABCUL) website .

If you’re based successful Scotland, the Scottish League of Credit Unions website provides utile resources and accusation astir recognition unions successful your area.

To assistance members, the Joint Administrators volition regularly update LCCU’s website with guidance connected opening alternate accounts and different indispensable updates.

If you’re unsure wherever to start, your section Citizens Advice Bureau tin assistance you unfastened a slope account.

You tin besides sojourn your nearest precocious thoroughfare slope oregon gathering nine for assistance.

For residents successful Hackney, Newham, oregon Tower Hamlets, Citizens Advice East End offers proposal and support.

It’s champion to interaction your section Citizens Advice work for tailored assistance, arsenic immoderate locations lone enactment residents of their area.

You tin hunt for your nearest bureau connected the Citizens Advice website.

By taking swift action, you’ll guarantee your funds are acceptable for usage erstwhile your compensation is processed.