Waltham Forest Council Employee Credit Union (WFCECU) has ceased trading after it was put into administration on Tuesday.
A notice on the credit union’s website says joint administrators from Quantuma Advisory Ltd were appointed on 19 August.
The credit union, also known as Forest Savers, was set up in 1990 to serve council staff in Waltham Forest, outer London, and at the time it ceased trading served 675 members.
The Financial Services Compensation Scheme (FSCS) has also declared WFCECU in default, which means eligible members’ monies are protected and eligible members will receive payment of their balance (up to the limit of £85,000 per individual) from the FSCS.
The FSCS said it will compensate most of the members by cheque within seven working days. It expects the total compensation for the credit union to be just over £1m.
“Eligible members of WFCECU don’t need to worry as their money is safe and their money will be returned by the FSCS,” said Dina Devalia of Quantuma. “You don’t need to do anything to get your money back – anyone with a deposit with the credit union should look out for a cheque in the post from the FSCS in the next few days.
“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.”
