MORE than £1.2 million belonging to 1,200 members of an area credit union will be protected as the business stops trading.
The Financial Services Compensation Scheme (FSCS) stepped in as Yoker Credit Union Limited went out of business, meaning they cannot re-pay deposits to its members.
The statutory compensation scheme said they would compensate the "vast majority" of members within seven days "without them having to lift a finger".
It will automatically send out payments using the credit union's records.
Mark Oakes, head of communications at FSCS, said: “We are protecting members of Yoker Credit Union Limited. We’re here for you, and we’re ready to help. Your savings are protected up to £85,000, and joint accounts are covered for £170,000.
"You should get your money back within the week. The process is automatic, too, so you won’t have to apply for compensation.”
FSCS stated members with up to £1,000 in their account will receive a letter to get cash over the counter at their local Post Office. Anyone with more than that will get a cheque for the balance directly from FSCS.
The total payout is expected to be more than £1.2m, said FSCS.
Yoker Credit Union's website states it was formed in 1989: "During our 20 years of operation our members’ savings have grown to over £1,000,000 with over 1 million pounds being loaned to each other in the last financial year.
"The Credit Union is managed by a volunteer Board of Directors, and operated with a team of two employees and over 30 dedicated volunteers."
Administrators Andrew Poxon and Stuart Robb of Leonard Curtis have been appointed to deal with Yoker Credit Union.