My Community Bank Wales folds owing 3,000 members
- Published
My Community Bank Wales had an office in Swansea
A credit union has gone bust and cannot repay more than 3,000 members.
The Financial Services Compensation Scheme (FSCS) has stepped in to repay members of Loans and Savings Abertawe Credit Union (UK) Limited, which trades as My Community Bank Wales.
The "vast majority" will receive compensation within seven days, it said.
But the FSCS only protects up to £85,000 of savings, or double that for joint accounts.
It expects its total payout to be £498,000.
People with up to £1,000 in their account will receive a letter to get the cash from their local Post Office, and anyone with more will automatically receive a cheque.
My Community Bank Wales had an office on Walter Road in Swansea and offered services to all of Wales, excluding Cardiff and the Vale of Glamorgan.
The Association for British Credit Unions said: "Very sadly, from time to time individual credit unions get into financial difficulty and fail. Those that do tend to be small credit unions who face localised challenges.
"However, these isolated cases are no reflection on the performance of the credit union sector overall."
Credit unions are non-profit-making money cooperatives which provide savings, loans and a range of services to their members.