Reassurance is given to the users of credit union

PEOPLE with money tied up in Gloucestershire Credit Union Limited have been reassured they will get it back.

It follows the company ceasing to trade and going into administration on September 14.

A credit union is a self-help co-operative whose members pool their savings to provide each other with credit at a relatively low interest rate.

Gloucestershire Credit Union Limited was based in Gloucester Central Library, in Brunswick Road, Gloucester.

The Financial Services Compensation Scheme said the company had failed, or in other words was in default.

It said James Sleight and Peter Hart of PKF Geoffrey Martin & Co Ltd had been appointed joint administrators.

On its website, the FSCS said: “As a Gloucestershire Credit Union Ltd customer, you don’t need to worry, as your money is safe.

“FSCS will automatically pay back your money, according to the account details we receive from the credit union. We’ll contact you by post.”

Under the scheme, all savers’ monies are protected and they will receive their funds up to a limit of £85,000 per individual.

A spokesman for the administrators said the majority of people with money in the credit union would have already received a cheque in the post.

He said anyone with any queries should contact the administration team on 01452 595290 or 01452 422712 or email gcul@pkfgm.co.uk .

He added that the team had started to investigate why the company had failed and it would not be surprised if the cost of living crisis was to blame.