Lender declared in default

Lender declared in default




A lender has called in the administrators after announcing that it had stopped trading and was in default.

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p>Wolverhampton-based Whitmore Reans Credit Union which is owned and controlled by its 981 members, has appointed Stephen Cork and Joanne Milner of Cork Gully LLP as joint administrators. 

To protect the members, the Financial Services Compensation Scheme (FSCS) has stepped in after establishing that Whitmore Reans was unable to repay deposits.
 
The FSCS revealed that the majority of members will be compensated within seven days and it will use the credit union’s records to automatically send payments to them.
 
Mark Oakes, Head of Communications at FSCS, said: “FSCS is protecting Whitmore Reans members.
 
“We’re here for you and we’re ready to help. 
 
“Your savings are protected up to £75,000 (£150,000 for joint accounts) and you should get your money back within the week. 
 
“The process is automatic too, so you won’t have to apply for compensation.”
 
Members with up to £1,000 in their account will receive a letter to cash over the counter at their local Post Office, and anyone with more than this will receive a cheque directly from FSCS. 
 
The FSCS has come to the aid of more than 4.5 million people since 2001 and paid out over £26bn in compensation.
 

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