Polish Credit UK has been placed into administration, with insolvency practitioners Dean Watson and Paul Stanley of Begbies Traynor appointed to oversee affairs.
Polish Credit Union UK was launched in 2013 and has 500 members to its name. It has a single branch in West Ealing, London.
In an announcement posted on the union’s website, those with accounts were told their money is “safe” and that “all savers will have their balances returned by the Financial Services Compensation Scheme”.
“This is an automatic process and savers do not need to do anything. FSCS will send payment of your balance directly to you within seven days,” it said. “If you have a loan with the Credit Union, please continue to make loan payments in accordance with the terms and conditions of your loan agreement.”
Dean Watson, administrator and partner at Begbies Traynor, said: “Our immediate priority is to work with the FSCS to ensure that all savers get their money back as quickly as possible. Staff from the Credit Union and Begbies Traynor are on hand to help savers with any queries that they may have. We have issued a letter to all members containing a Frequently Asked Questions worksheet and issued a statement on the Credit Union’s website providing further information and a link to the FSCS statement.
"This case shines a light on the challenges that many credit unions face in engaging new members and responsibly increasing loan books required to ensure viability and regulatory compliance.”