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Financial Services Compensation Scheme

Posted by Administrator (admin) on Aug 12 2009
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The specific words credit unions must use to inform their members about the Scheme are below:

"Important Information about Compensation Arrangements

We are covered by the Financial Services Compensation Scheme (FSCS).  The FSCS can pay compensation to depositors if a credit unions is unable to meet its financial obligations.  Most depositors—including most individual and small businesses—are covered by the scheme. In respect of deposits, an eligible depositor is entitled to claim up to £50,000.  For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum that could be claimed would be £50,000 each (making a total of £100,000).  The £50,000 limit relates to the combined amount in all the eligible depositor’s accounts with the credit union, including their share of any joint account, and not to each separate account.

 

For further information about the scheme (including the amounts covered and the eligibility to claim) please ask at your local branch, refer to the FSCS web site http://www.fscs.org.uk/ or call 0800 678 1100. "

 

See the ACE Newsletter for more information about the policy statement and how it applies to crediut unions.

 

Last changed: Apr 23 2010 at 9:51 AM

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