Administrators appointed as credit union defaults

A credit union has gone into administration, forcing more than 1,000 people to be compensated by the Financial Services Compensation Scheme.

Cork Gully’s Stephen Cork and Joanne Milner have been appointed joint administrators of Staffordshire Credit Union, which has now stopped trading.

The credit union, which was launched in 2008 and based in Stoke-on-Trent, had more than £450,000 in savings from 1,027 members.

In a statement, the administrators said: “The joint administrators are working closely with Staffordshire Credit Union Limited’s regulator (the Prudential Regulation Authority) to ensure that the credit union’s affairs are wound up as efficiently and as quickly as possible.

“Staffordshire is no longer able to offer any accounts to members and the Financial Services Compensation Scheme declared Staffordshire in default.”

Administrators sought to reassure people and said “You do not need to worry as your money is safe”.

Members with less than £1,000 will be repaid in cash at post offices, and people with balances between £1,000 and £85,000 will be sent a cheque. The Compensation Scheme’s limit is £85,000.