Refunds are fast-tracked for Christmas after credit union fails

Members of the collapsed Streetcred credit union have been urged to contact the Financial Services Compensation Scheme (FSCS) for a refund.

The Lancashire-based credit union closed its doors on 16 October, leaving its 3,000 members – many of whom are on a low income – exposed to potential losses. However, the union's deposits are protected by the FSCS up to £35,000 per claim. Within nine days of the collapse, compensation was being paid.

This is a quick turnaround for the FSCS, which has been criticised in the past for taking too long to reunite investors with their cash when a financial institution goes bust. This time around, with low-income consumers involved and Christmas approaching, the FSCS "pulled out all the stops", said Loretta Minghella, the scheme's chief executive.

"We have sent application forms for compensation to just over 3,000 members of the credit union and would encourage those who believe they have lost money to return the forms as soon as possible."

Any members who have not yet heard from the FSCS and are owed money should contact the scheme on 020 7892 7300.

"We are aiming to complete paying Streetcred members by Christmas," added Ms Minghella.