You are here: Home - Saving-Banking - News -

FSCS to compensate CommuniSave savers

Written by:
The Financial Services Compensation Scheme (FSCS) is to compensate savers affected by the collapse of Birmingham-based credit union CommuniSave.

The scheme will compensate some 2,000 customers who hold more than £1m with the firm.

It will automatically send payments to the credit union’s members based on the union’s membership records, with savers with less than a £1000 receiving a letter to get cash over the counter and anyone else receiving a cheque.

The scheme hopes to compensate the vast majority of savers within seven days, as is standard FSCS procedure.

FSCS operations director Kate Bartlett said: “FSCS is protecting CommuniSave Credit Union members. We’re here for you and we’re ready to help.

“Your savings are safe and we will get them back to you within the next week. And the process is automatic so you won’t have to apply for our protection. FSCS guarantees up to £85,000. That will protect every member of the credit union.”

The FSCS, which has been set up to protect customers from losing their money when a financial services firm goes bust, is funded by a levy on financial services firms.

The FSCS levy is made up of management expenses – the expense of running the service – and compensation costs.

Earlier this month the scheme announced it would change the way it calculates fees based on the average of the proceeding three years’ expected compensation costs – or one year’s, whichever is the greater.


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week