by Alan Quick

THE Crediton Plough and Share Credit Union service which has been operating at the Council Offices in Market Street, Crediton, on Friday afternoons has stopped because Plough and Share Credit Union Limited has ceased trading.

The Financial Services Compensation Scheme (FSCS) stepped in to protect members of Plough and Share Credit Union Limited, to stop its trading, which now means the credit union is in default. This means it cannot re-pay deposits to its 2,550 members.

FSCS says it will compensate the vast majority of members within seven days. The scheme will use the credit union’s records to automatically send payments out to those members.

People 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 this will receive a cheque for their balance direct from FSCS.

FSCS protects up to £85,000 of savings - double that for joint accounts. It has come to the aid of more than 4.5 million people since 2001, while paying out more than £26 billion in compensation. FSCS expects the total pay-out for Plough’s members will be more than £1.1 million.

For more information on how FSCS helps people with current or savings accounts in banks, building societies and credit unions, please visit:  http://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/

Any queries about Plough and Share Credit Union Limited can be directed to the administrators, Jo Milner and Stephen Cork of Cork Gully LLP by post; 52 Brook Street, London W1K 5DS, via telephone on 0333 210 0027 or by email: [email protected] .

Gerald Conyngham, a local volunteer with the Credit Union, told the “Courier”: “We are sorry to say that the Plough and Share Credit Union which covers many parts of Devon has gone into administration.

“This means that there will no longer be a service operating from the Crediton Council Offices on Friday afternoons.

“People with savings and loans with the Credit Union have all been informed and those with savings are having their money reimbursed so they will not lose out.

“All those involved with the Credit Union are sorry this has happened.  We see Credit Unions as having a vital role to play, especially in offering loans at much lower rates than door-to-door loan providers. We hope people will consider alternatives such as Somerset Savings and Loans or the City of Plymouth Credit Union.”