Administrators appointed at South Tyneside Credit Union

Administrators appointed at South Tyneside Credit Union

Dina Devalia and James Sleight of PKF Geoffrey Martin & Co have been appointed as Joint Administrators of South Tyneside Credit Union Limited.

The Financial Services Compensation Scheme (FSCS) has also declared the credit union in default, which means that savers are entitled to receive their deposits back.

South Tyneside Credit Union trades under the name ‘First for Money’ and has branches in Sunderland and South Shields.  It provides savings accounts and loans for people and small businesses in Tyne and Wear, County Durham and Northumberland.

Dina Devalia, of PKF Geoffrey Martin & Co, said: “All of South Tyneside Credit Union’s savers will have their balances returned by the FSCS. 

“Savers don’t need to do anything to get their money back - anyone with a deposit with the organisation should look out for a letter in the post from the FSCS in the next few days.

“Our immediate priority is to work with the FSCS to ensure that all savers get their money back as soon as possible.  We’ll also be on hand to assist savers with any queries that they may have on issues such as setting up new savings accounts or transferring direct debits.”

“The FSCS is aware that the 380 cheques it sent on 5 April 2018 to members of South Tyneside Credit Union Limited contain a printing error, and cannot be cashed. Members with more than £1,000 in their account who received a cheque for their balance direct from FSCS are affected.

“FSCS is acting quickly to put this right and intends to issue replacement cheques to affected members of the credit union by no later than Monday 9 April.  This means these members should receive the replacement cheques by Tuesday 10 April. In the meantime, to avoid confusion, FSCS has cancelled the cheques it has already issued to the 380 members affected.”

We have prepared a Q&A document that provides further information for those affected.

For press enquiries, please contact Andy Konieczko on 020 7516 2209 or akonieczko@pkf-littlejohn.com; for other enquiries, please contact the PKF Geoffrey Martin team on 020 7516 2420 or stcu@geoffreymartin.co.uk