East Sussex credit union goes into administration

Hastings & Rother Credit Union Limited (HRCU), trading as 1066 Community Bank, entered administration due to regulatory and solvency issues yesterday (Tuesday, August 8), as reported by the BBC.

The Financial Services Compensation Scheme (FSCS) said it would aim to compensate most of the credit union’s members within seven days.

As reported by the BBC, the credit union has 590 members.

A credit union is a not-for-profit self-help co-operative whose members pool their savings to provide each other with credit at a low interest rate.

The FSCS said it will send credit union members a letter or cheque by post in an unmarked envelope.

A spokesperson said any credit union member with a balance below £1,000 will get a letter to get cash over the counter at the Post Office, which they should take to any Post Office counter, with personal identification, as outlined in that letter.

Any credit union member with a balance over £1,000 will automatically receive a cheque, the FSCS added.

A statement on the 1066 Community Bank website read: “Please be advised that Dina Devalia and James Varney of Quantuma Advisory Limited (“Quantuma”) were appointed as Joint Administrators of HRCU on August 8, 2023.

“The Financial Services Compensation Scheme (FSCS) has also declared HRCU in default, which means that, despite the administration, all savers’ monies are protected and they will receive payment of their balance (up to the limit of £85,000 per individual) from the FSCS.

“Dina Devalia of Quantuma Advisory Limited has said: “All of HRCU’s savers will have their balance 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.”

“HRCU has now ceased trading.”

The credit union said all members would be required to continue repaying any loans, in line with their agreement, until they are fully paid off.