FSCS compensates savers after credit union collapse

Carmen Reichman
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The Financial Services Compensation Scheme (FSCS) will compensate savers affected by the downfall of Cumbria-based Millom & District Credit Union, which went into liquidation today.

The FSCS said it would pay back the majority of the credit union's 530 savers, who hold a combined £235,000 with the firm, within seven days.  The FSCS, which is funded by financial services firms through a compulsory annual levy, protects up to £85,000 of savings or £170,000 for joint accounts. The scheme usually collects its pool pot of funding in August every year and starts drawing from it within a month thereafter. The current levy, which was collected last autumn, stood at a total of £265m. Since 2001, the scheme has paid out more than £26bn in compensation to more than 4.5 m...

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