Coastal Credit Union Limited – what has happened to it and is my money safe?

You do not need to worry as your money is safe.

On 9 August 2016, Coastal Credit Union Limited was placed into administration and has now ceased trading, however, the Boscombe office remains open. Jo Milner and Stephen Cork of Cork Gully LLP have been appointed as administrators. FSCS declared Coastal Credit Union Limited in default on 9 August 2016.

What is the Financial Services Compensation Scheme (FSCS)?

FSCS protects the customers of authorised financial services firms, such as Coastal Credit Union Limited. This means FSCS protects any savings you have with this credit union up to £75,000 and does not charge savers for using its service.

 

What do I need to do to get my money back?

You do not need to do anything. FSCS will automatically pay you back your savings according to the account information it receives from Coastal Credit Union Limited.  FSCS will contact you by post.

How soon will I get my money back?

For the vast majority of cases, FSCS aims to pay compensation within seven days from the date Coastal Credit Union Limited was declared in default, 9 August 2016. For more complex cases, which may require further investigation, FSCS will aim to settle claims within 20 working days of default.

How will FSCS pay me back my money?

If you have a balance below £1,000, you will get a letter to get cash over the counter at the Post Office. To receive payment, take this letter to any Post Office counter, with personal identification, as outlined in that letter. If you have a balance over £1,000, you will receive a cheque. In both events, we will contact you by post in an unmarked envelope.

How will FSCS calculate how much compensation I am entitled to?

FSCS will receive information from Coastal Credit Union Limited which will detail your individual credit balance.  The amount of compensation you receive will be the balance on your account as at the date FSCS declared Coastal Credit Union Limited in default, 9 August 2016.

What should I do if I disagree with the amount of compensation FSCS has paid me and I have not banked the cheque or received cash over the counter at the Post Office?

If you disagree with the amount of compensation paid, please contact the administrators – Cork Gully LLP, 52 Brook Street, London W1K 5DS; telephone 0333 2100027; or email CoastalCU@corkgully.com – who will look into your query. Do not return your payment to FSCS unless you are specifically requested to do so.

I do not have another bank account. What should I do with my compensation cheque?

You will need to open a bank account with another deposit taker (e.g. a bank, a credit union, building society or the Post Office) as soon as possible in order to bank the cheque. If your salary or benefit are paid into your account at the credit union, you’ll need to open a new account elsewhere – and tell your employer or the Department for Work and Pensions. See below for important contact details for benefit matters.

Why doesn’t FSCS pay all members of Coastal Credit Union Limited by cheque?

Some people may need the money and do not have another bank account that they can pay a cheque into.  The “cash over the counter” option is very flexible and allows people to have access to their money much more quickly than a cheque for a small balance.

Can FSCS make a compensation payment directly to my account with another bank?

FSCS is not in a position to make electronic money transfers to other banks. FSCS makes payments either by cheque or by cash over the counter.

I have heard that my Coastal Credit Union Limited savings account will no longer operate. What should I do?

Coastal Credit Union Limited saving accounts will no longer operate. If your salary or benefits are paid into your savings account you will need to open a new bank account as soon as possible. You should contact your employer, pension provider or the Department for Work and Pensions (DWP) to tell them to pay your salary or benefits into your new account.

My child has a savings account with Coastal Credit Union. What will happen to his/her savings?

For junior members, FSCS will send a payment in the name of the account holder for the balance of their account at the date of default. If the account is operated by an adult on behalf of the child then the cheque will be sent to the account operator’s address, if that has been registered with the Credit Union, but the cheque will be made out in the child’s name. A new account in that name will need to be opened with an alternative provider.

I make regular payments to my account each month by standing order. Should I cancel the standing order now?

If this payment relates solely to savings then you should cancel it as no further money will be credited to your savings account. You can cancel the standing order at any branch of your bank or building society, over the phone or via secure online banking. However, you will need to give your bank/building society a couple of days’ notice before the payment is due to come out of your account. If your standing order also relates to loan repayments do not cancel it and please see point 14 below.

I had a loan with Coastal Credit Union Limited. Will I have to repay it and should I cancel the standing order?

Do not cancel any repayments as your loan agreement remains in place and you must maintain your repayments as originally contracted. Future Loan repayments will be managed by the administrators, Jo Milner and Stephen Cork of Cork Gully LLP, 52 Brook Street, London W1K 5DS, who will contact you about this. If you made payments covering both loans and savings then the joint administrators will be able to advise you of the net payment required to be made each month in respect of your loan so that you do not fall into arrears.

Can I open up an alternative credit union account?

Members/junior depositors who wish to open a new credit union account have the opportunity to do so with alternative credit unions, whose common bond extends to cover geographical area served by Coastal Credit Union.

A payment was transferred into my credit union account around the time FSCS declared Coastal Credit Union Limited in default. This amount does not appear to have been credited. Will the balance on my account be updated to reflect this payment?

FSCS will receive information from Coastal Credit Union Limited which will detail the individual credit balances of all accounts held by its members at the date of default. Any amounts paid into the account after the administration date will not be added to your savings balance and will be dealt with by the administrators, who you can contact on 0333 2100027 or via email at CoastalCU@corkgully.com

Do I need to notify FSCS if I have recently changed address?

FSCS will send payment to the address that Coastal Credit Union Limited hold on their database. If you did not notify Coastal Credit Union Limited of your change of address before it was declared in default, or you notified Coastal Credit Union Limited of this change but did not receive confirmation from them that their records had been updated before it was declared in default, FSCS will need to see evidence of the change of address before any compensation payment can be made. Please contact the administrators – Cork Gully LLP, 52 Brook Street, London W1K 5DS; telephone 0333 2100027 or email CoastalCU@corkgully.com – with evidence of the change of address and once confirmed they will instruct FSCS to make payment to the new address. Documents that can be used as evidence include a council tax bill, a utility bill (not a mobile phone bill) or benefits entitlement letter, so long as they are fewer than three months old.

I am homeless – how will I receive my payment?

Special arrangements are being made for Members who have no fixed abode. Coastal Credit Union Limited’s staff will contact you individually via your recorded mobile phone number in order to make personal arrangements for you to collect you compensation payment.

Do I need to notify FSCS if I have recently changed my name?

If you have already received your cash over the counter, or banked the compensation cheque, you do not need to take any further action. If you have not received your compensation payment or are unable to bank the cheque provided in the name it is sent in we will need to see evidence of your name change before any payment can be made. You will therefore need to provide original documentation or certified copy of an official document showing your change of name, for example a marriage certificate or deed poll, and this will allow us to update our records and process the claim.

I am the executor of a depositor who has recently died. Do I need to contact FSCS?

If the estate has already received cash over the counter, or banked the compensation cheque, you do not need to take any further action.  If the estate has not received the compensation payment, you will need to send FSCS the Death Certificate, Grant of Probate and a copy of the will or letter of administration).  These should be either certified copies or original documents.  These documents are required before FSCS can make a compensation payment. However, should you wish to speak to FSCS regarding any issues that you may have you can contact it on freephone 0800 678 1100 or 020 7741 4100. Lines are open Monday to Friday 08.30 to 17.30.

How will I be able to find out what is happening?

In the first instance, you should contact the administrators on 0333 2100027 or via email at CoastalCU@corkgully.com

If you have a query about compensation from FSCS, further information can be obtained from the FSCS website at www.fscs.org.uk; or by calling on freephone 0800 678 1100 or 020 7741 4100. Lines are open Monday to Friday 08.30 to 17.30.

Important Contact details for Benefits Claimants

You will need to tell the Department for Work and Pensions (DWP) about a change in your circumstances especially that you want your benefit paid to a different account

Call the appropriate number as per the list below for each benefit you claim.

You will need to quote your National Insurance number and date of birth when you call any of these numbers.

Benefit Telephone Textphone
Jobseeker’s Allowance
Income Support
Incapacity Benefit
Employment and Support

0345 608 8545 0345 608 8551
Maternity Allowance

0345 608 8610 0345 608 8553
Bereavement Benefit

0345 608 8601 0345 608 8551
Universal Credit

0345 600 0723 0345 600 0743
Pensions

0345 606 0265 0345 606 0285
Disability Living Allowance

0345 605 6055 0345 604 5312 (if you were born on or before 8/4/16)
Disability Living Allowance

0345 712 3456 0345 722 4433 (if you were born after 8/4/16)
Attendance Allowance

0345 605 6055 0345 604 5312
Personal Independence Payment

0345 850 3322 0345 601 6677
Carers Allowance

0345 608 4321 0345 604 5312 or online at WWW.Gov.UK
Child Benefit

0300 200 3100 0300 200 3103 or online at WWW.Gov.UK