Lender in default leaves over 400 clients exposed

Lender in default leaves over 400 clients exposed




The Financial Services Compensation Scheme (FSCS) has stepped in to protect nearly 440 members of Lower Iveagh Credit Union Limited after it was wound up on 19 November.

The Financial Services Compensation Scheme (FSCS) has stepped in to protect nearly 440 members of Lower Iveagh Credit Union Limited of Hillsborough Road, Dromore after it was wound up on 19 November.

The credit union based in Belfast has now ceased trading but fortunately as a result of the involvement of the FSCS, the majority of member’s money is thought to be safe and will be returned to owners within seven days.

Kate Bartlett, Director of Operations for FSCS, says Lower Iveagh CU customers will not need to lift a finger to get their savings back.

“We’re ready to help. Your savings are safe and we will get your money back to you within the next week,” she stated.

“The process is automatic so you won’t have to apply for compensation. We will pay up to £85,000, so every member of the credit union is protected.”

Some 440 savers have just over £400,000 with Lower Iveagh CU and any customers with up to a thousand pounds will receive a letter to cash over the counter at their Post Office. Anyone with more than that will receive a cheque.

Loan agreements with the credit union will remain in place and will be managed by the liquidator Joan Rice of Harbinson Mulholland. 

The FSCS protects up to £85,000 of savings or £170,000 for joint accounts and has come to the aid of more than 4.5 million people since 2001, paying out over £26 billion in compensation.

Their scheme protects deposits, insurance and investments when authorised firms go bust and are funded by financial services.

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