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 life 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.

Karen Turner, her mum and daughter were all members of the credit union.

The 45-year-old Knightswood resident told the Post: “I’d been with them for a couple of years now and I joined because it was a great idea to save and get a loan against that. I liked that the repayment was minimal and the interest was less than the bank.

“It was a shock and a worry if I’d lost all my money. When I receive my money back I shall just put it into another credit union.”

Yoker Credit Union’s website states it was formed in 1989.

It adds 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.

Bill Kidd, MSP for Glasgow Anniesland, told the Post: “I am very concerned to hear that Yoker Credit Union has closed its doors, I know it has been a part of our community since 1989 and has done some great outreach work into local schools, assisting in teaching our next generation how to be more ‘money wise’.

“At this point I have no other information except that put out by Mr Owen, from the FSCS. Yoker’s number is 213984 according to their website, which as the information I have seen says, covers depositors up to £85,000 per individual account and £170,000 for joint accounts.

“People should hear from the compensation scheme within a week, for further information about the compensation scheme I would suggest that people also look to contact the FSCS direct on either their website or call 0800 678 1100.

“If anyone finds that they are having problems receiving their deposits back from the FSCS please feel free to contact my office and my staff will do everything they can to assist.”