Members to be compensated as credit union closes

Almost 500 members of a credit union are set to be compensated after the company ceased trading and was placed in default.

The Financial Services Compensation Scheme (FSCS) said the total package for Basildon Credit Union Ltd (BCU) was estimated to be about £344,000.

Most of the Essex-based firm's 498 members would be paid by cheque within seven days, the FSCS said.

Emma Barrow, from the FSCS, said customers could be "assured that their money is safe".

She added: "Members with live accounts don't need to do anything, they will receive their money automatically by cheque within a few days."

A statement on BCU's website from the joint administrators confirmed they had been appointed on Monday.

It added: "We are working with the FSCS to ensure that eligible members receive their money back as soon as possible.

"We will also be on hand by email or phone to assist members with any queries that they may have on issues such as loan repayments or the transfer of benefits to alternate financial institutions."

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