MORE than £100,000 is expected to be paid out to credit union customers after its collapse on Monday.

Faifley Credit Union Ltd ceased trading and the Financial Services Compensation Scheme (FSCS) declared them in default, meaning they don’t have the assets to pay claims.

Based at Skypoint in Lennox Drive, the credit union had 95 members and all will be compensated by the FSCS within seven days.

The FSCS said they expected the total payout to be just under £106,000.
Caroline Rainbird, chief executive of FSCS, said: “FSCS is here to protect the members of Faifley Credit Union Ltd and to help them get back on track. 
“We want to reassure them that their money is safe. No-one needs to worry or to do anything as they should receive their money within a week. We protect people’s savings up to £85,000, and joint accounts up to £170,000.”

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Clydebank MSP Gil Paterson said: “I was unaware that his had happened and I am very pleased that swift action has been taken. 

“I am sure that for all of those concerned it is of enormous relief for them and their families, especially at this difficult time, that savings have been protected, and I am sure they will be grateful to the regulator for this outcome.”

Councillor Douglas McAllister, who represents Faifley, told the Post he welcomed the support from the FSCS offering immediate compensation to the 95 members for their full balance.

He said: "It must have been a worrying time for those involved in the lead up to Christmas but the announcement that they will receive payment within seven days should hopefully give some comfort.

"The FSCS is the UK’s statutory scheme set up to protect depositors in such occasions.

"I’m sorry to hear of the demise of the Faifley Credit Union. Credit unions are a recognised, reputable source of finance for many in our community and often alternative sources of lending are less favourable to those who need financial help."

The FSCS said enquiries about Faifley Credit Union Ltd could be directed to the joint administrators, Dina Devalia and James Sleight of PKF Geoffrey Martin & Co Ltd.

Administrators can be contacted by phone on 0141 432 1128, or 0113 244 5141. They can also be contacted by email at faifleycu@geoffreymartin.co.uk or by mail at Faifley Credit Union Limited c/o PKF Geoffrey Martin & Co Limited, 3rd Floor, One Park Row, Leeds LS1 5HN.