Savings Security

Your money is 100% safe because Credit Unions in the UK are strictly regulated, and we are members of the Financial Services Compensation Scheme

Credit Union Regulation

The main Act of Parliament which governs how credit unions operate is the Credit Unions Act 1979. This sets out the objectives of a credit union: -

  • The promotion of thrift among the members of the society by the accumulation of their savings;
  • The creation of sources of credit for the benefit of the members of the society at a fair and reasonable rate of interest;
  • The use and control of the members' savings for their mutual benefit;
  • The training and education of the members in the wise use of money and in the management of their financial affairs;
  • The Act states that credit unions must have their accounts audited annually by a qualified auditor and that they must be insured against fraud or theft.

Since March 2012  Termonaguirk Credit Union has been regulated by the Financial Services Authority (registration number 573928), as are banks and building societies. The performance of each credit union is monitored by the Financial Services Authority and staff and volunteers involved in the running of the Termonmaguirk Credit Union must be approved by the FSA.

 If you have any concerns about how your Credit Union is operated, you are invited to discuss them with staff or a Board or Supervisory member.

The Financial Services Compensation Scheme 

We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a credit union is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme.

In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the credit union, including their share of any joint account, and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website http://www.fscs.org.uk/ or call 0800 678 1100.

Credit union members also have the option of complaining to the Financial Ombudsman Service, if they don't get satisfaction from their credit union's internal complaints procedure.

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