The FSCS has declared Hastings & Rother Credit Union Limited (trading as 1066 Community Bank) in default.
The FSCS expects the total compensation for members of the credit union to be over £387,000.
Founded in 1999, the credit union was based in Hastings and acted as a financial cooperative, offering its members financial security through saving and borrowing.
In 2018 the credit union recorded a turnover of £13K.
The FSCS will send members of the credit union with balances below £1000 a letter to allow them to get cash at any Post Office branch, while members with balances over £1000 will receive a cheque automatically.
Anyone who believes they still have money in an account with the Credit Union but has not received a compensation cheque from FSCS within seven days should contact administrator Quantuma at
Dina Devalia and James Varney of business advisory firm Quantuma have been appointed as joint administrators of the credit union.
According to the administrators, the credit union entered administration due to regulatory and solvency issues on 8 August.
The credit union’s office in Hastings will close immediately.
The administrators added that all loan members will be required to continue repaying their loans in this administration, in line with the loan agreement.
FSCS protection covers money held in banks, building societies and credit union accounts. The FSCS also protects insurance, investments, mortgage advice and arranging, debt management and funeral plans.