Money will be returned to savers as credit union collapses

Savers who invested money into the now defunct North East Scotland Credit Union have been assured they will have their savings returned after the organisation went under.

Last night, a message was published on the NESCU website stating that the co-operative, which had More than 2,500 savers on its books, had gone into administration and had ceased trading.

Dina Devalia and Stephen Goderski, of PKF Geoffrey Martin and Co, have been appointed as the joint administrators.

They said the Financial Services Compensation Scheme (FSCS) declared NESCU to be in default, meaning that all the cash users had been saving will be protected.

Ms Devalia said: “All of NESCU’s savers will have their balances returned by the FSCS.

“They don’t need to do anything to get their money back, savers should look out for a letter in the post from the FSCS in the next few days.”

Kirsty Blackman, MP for Aberdeen North, said: “This news will come as a great shock to the 2,600 members of NESCU, but it is important that they understand their money will be returned to them as it is covered by the FSCS.

“I have been informed that extra assistance will be provided to those customers of NESCU who also receive benefits, but I would urge anyone in Aberdeen to contact me if they are affected and may have concerns about that.

“It is incredibly unfortunate that so many people have been affected by this situation, and I will be seeking assurances from administrators that everything is being done to inform folk of how to get all of their money back.”