First Failure Of A Regulated Credit Unionin the UK

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LONDON - (11/11/04) The first failure of a regulated creditunion in the U.K. has occurred. Hackey South Credit Union has beentaken over by regulators; now its members are waiting to see howthey will be compensated by the insurer of those deposits, theFinancial Services Compensation Scheme. The credit union hadapproximately 1,100 members, most of whom had less than£2,000 on deposit, according to its interim CEO, Ron Devlin.Under the FSCS, members of institutions in default are compensatedfor 100% of their deposits up to £2,000; they are reimbursed90% of remaining funds up to £31,700.

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