UK community lender Barrow & District Credit Union goes bust

Barrow & District Credit Union (BDCU), a UK community savings firm, has shut down with administrators called to secure the money of its 1,200 members.

The FSCS expects a payout in excess of £500,000

The UK’s Financial Services Compensation Scheme (FSCS) has stepped in and will reimburse the 1,227 people affected. A total pay-out in excess of £500,000 is expected.

“If you have savings at [BDCU], you don’t need to do anything to get your money back,” says James Sleight of administrators PKF GM.

“We’ll also be in touch with anyone who has a loan from Barrow & District Credit Union to explain what happens next.”

Founded in January 2013 and based in Furness, BDCU offered loans and savings options to people in the local area.

Simon Fell, a Conservative MP and former chair of the credit union, told In Cumbria the collapse is “desperately sad news”.

He adds: “I’ve no doubt that something will rise to take its place, but this is a real loss and I’d like to pay tribute to the board, staff, and members who have worked tirelessly to serve Furness.”