The Financial Services Compensation Scheme (FSCS) has intervened to protect the members of London Community Credit Union Limited (LCCU) after the credit union ceased trading and was declared in default. The FSCS has committed to compensating members to the tune of approximately £15.4 million.
LCCU, which had branches in Stratford and Hackney, has faced significant closures, including two branches in Bethnal Green and Poplar, before halting its operations entirely. The closure has left thousands of members seeking compensation for their savings.
The FSCS has assured members that their savings are protected and that most of the credit union’s 18,335 members will receive compensation within seven working days. The FSCS guarantees protection for savings up to £85,000 per person, ensuring that members’ money remains safe.
Sarah Marin, chief customer officer at the FSCS, emphasized the importance of reassuring customers during such difficult times. “We want to reassure customers of London Community Credit Union that their money is safe,” Marin said. “FSCS protects people’s savings up to £85,000, and we’re committed to making sure customers can access their money and get back on track as quickly as possible when a credit union goes out of business.”
Members with a registered email address can request compensation either via cheque or direct bank transfer through the FSCS Payments Portal. For those unable to use the online portal, a cheque will be automatically issued within seven working days.
If any LCCU members have not been contacted by the FSCS but believe they have money in an account, they are advised to reach out to the joint administrators—James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited—at the designated office.
For further details regarding FSCS protection or to use the Payments Portal, members can visit the FSCS website. Those seeking more information about LCCU should contact the joint administrators at Third Floor, One Park Row, Leeds, LS15 5HN.
This move by the FSCS aims to quickly address the situation, providing financial security and support to those impacted by the closure of the London Community Credit Union.
