James Duddridge, Member of Parliament for Rochford and Southend East, has received a response from the Financial Services Authority following his letter to them in May raising concerns regarding Southend Credit Union.
The Financial Services Authority has advised that the Southend Credit Union closed on the 9th May 2011. That meant that Southend was no longer able to provide any new loans, redeem any member’s shares or effect any share to loan transfers. The only activity that is allowed to undertake is to collect repayments from existing loans.
The Financial Services Compensation Scheme handles the repayment of members’ savings and compensation payments of up to £85,000 will be made directly to members.
James said
“As I said previously, I was disappointed that Southend Credit Union was no longer operational however, I am pleased that members are being reimbursed.
If any members are having problems then please contact me with all of the information and I will write to the relevant authority”
ENDS