675-member Waltham Forest Council Employee Credit Union Limited (FRN: 213408) has gone into administration and been declared in default by the Financial Services Compensation Scheme (FSCS).

The credit union traded as Forest Savers.

The FSCS has now stepped in to ensure members of the credit union get their money returned.

It said it was expecting total compensation for the 675 members of the London borough-based credit union to cost it around £1m.

The FSCS said it would compensate most of the members by cheque within seven working days.

Where contact details are missing for members who still have money in their account, the FSCS said it will not be able to issue cheques to these members immediately. 

The FSCS said anyone who believes they still have money in an account with the credit union but has not received a compensation cheque from FSCS by 29 August should contact the joint administrators, Dina Devalia and Terri Mulgrew at Quantuma Advisory Limited, 7th Floor, 20 St Andrew Street, London, EC4A 3AG.

Matthew Phillips, head of deposits at FSCS said: “Members of Waltham Forest Council Employee Credit Union Limited can be assured that their money is safe.

“FSCS protects people’s savings up to £85,000 and we are ready to help them get back on track as soon as possible.

“Members of the credit union do not have to do anything as most will receive their money directly by cheque from us within a few days.” 

The FCA warned members of the credit union to remain alert to scams, and to view its Scamsmart guidance.

Credit unions provide banking, loan and saving services, often to those at lower income levels with limited access to High Street banks.

In March 498-member Basildon Credit Union went into default, sparking claims of around £344,000.

In January the 18,000-member London Community Credit Union went into default sparking claims of around £15.4m.

According to Bank of England statistics, UK credit unions had total liquid assets of £1.242bn in 2023 with loans to members of £2.338bn.