The Financial Services Compensation Scheme (FSCS) has had to rescue the members of Haven Credit Union after the lender was declared as in default last Friday. According to the scheme, the majority of savers are set to get their money back within seven days.

The credit union has around 1,400 members with some £320,000 of savings. The lender ceased trading  last week after it was placed into administration.

As a result of being regulated, the Financial Services Compensation Scheme (FSCS) has come to the aid of the union's savers.

“FSCS is protecting Haven Credit Union members. We’re ready to help. Your savings are safe and we will get your money back to you within the next week,” according to Kate Bartlett, Director of Operations for FSCS.

“The process is automatic so you won’t have to apply for compensation. We will pay up to £85,000, so every member of the credit union is protected.”

On its website, Haven states that it works closely with local employers, housing associations and community groups in the area.

Loan agreements will remain in place with the lender, so repayments must be maintained.

People with up to a £1000 in savings can retrieve their cash over the counter at their post office, those with savings exceeding this limit will receive a cheque direct from the FSCS. 

Paul Brindley of Midlands Business Recovery has been appointed as Administrator.

Haven Credit Union began trading as Pembroke Borough Credit Union in 1993 and served the Pembroke, Monkton and Pembroke Dock areas. In 2002, it joined forces with the newly-formed Credit Union to cover further towns such as Milford Haven, Neyland, Haverfordwest and the surrounding areas.