Money saved with a credit union is safe

Money saved with a credit union is just as safe as money in the bank. Like banks, credit unions are regulated by the Financial Services Authority www.fsa.gov.uk and your money is covered by the Financial Services Compensation scheme just the same as banks.

Financial Services Compensation Scheme (FSCS) www.fscs.org.uk

A single scheme for all UK financial firms. Credit unions, banks and building societies have the equivalent level of cover under the scheme. The FSCS will provide safety and protection to the savings of members in a credit union if the credit union becomes insolvent and has to close. From 1 October 2007, FSCS can pay compensation for financial loss of up to £35,000 for deposit claims (which is 100% of the first £35,000) if a deposit-taking firm (such as a credit union) is unable to pay back deposits it owes to its members.

Financial Ombudsman service

If you have a complaint against the credit union you should complain directly to it. If your complaint is not resolved, you should contact the Financial Ombudsman Service.