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FSCS steps in as fifth credit score union fails 

The Rainbow Saver Anglia Credit score Union Restricted in Suffolk has been declared in default with the FSCS stepping in to guard 463 remaining members.

It’s the fifth credit score union this 12 months to go bust and the second this month.

The credit score union has stopped buying and selling and is now in default.

In response to the Affiliation of British Credit score Unions on the finish of September 2020 there have been about 240 credit score unions throughout England, Scotland and Wales serving about 1.3m prospects and taking care of almost £1.7bn in deposits.

As a part of a managed closure, Rainbow Saver has contacted most members who’ve withdrawn their remaining balances. 

The FSCS will defend the remaining 463 members who haven’t organized withdrawal of their cash by at the moment (18 Could).  

The FSCS says it expects the full compensation for Rainbow Saver Anglia Credit score Union to be round £179,000.

Utilizing the credit score union’s information FSCS will ship as many remaining members as doable a cheque for his or her steadiness mechanically. The place members could be contacted immediately, FSCS expects to return their balances inside every week. 

The FSCS says that contact particulars are lacking for among the members who nonetheless have cash of their Rainbow Saver account, which implies the FSCS won’t be able to subject cheques to those members instantly. Anybody who believes they nonetheless had cash in an account with the credit score union however has not acquired a compensation cheque from the FSCS inside seven days ought to contact the joint directors, James Sleight and Peter Hart of PKF Geoffrey Martin & Co Restricted. 

Sarah Marin, chief buyer officer at FSCS, stated: “We wish to reassure any remaining members of Rainbow Saver Anglia Credit score Union Restricted that their cash is protected. Most members who haven’t already closed their accounts will obtain their cash by cheque immediately from us inside a couple of days.”

The North East Warrington Credit score Union (NEWCU) Restricted was declared in default earlier this month by the FSCS to guard its 1,182 members. The credit score union ceased buying and selling not too long ago with the compensation invoice anticipated to be round £1.3m.

The Metropolis of Plymouth Credit score Union Restricted in Devon, which had 2,348 members, was declared in default by the FSCS in April owing £1.2m in whole. Strathkelvin Credit score Union Restricted in Glasgow and north-east Wales’ All Flintshire Credit score Union have been declared in default by the FSCS within the first quarter of this 12 months.

Cumulative losses to date at failed credit score unions this 12 months have topped a number of hundreds of thousands.



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