Almost 500 members of a credit union are set to be compensated after the company ceased trading and was placed in default. Professionals from consulting firm Quantuma will now oversee the administration of the Basildon Credit Union.
Founded in 1987, Basildon Credit Union acts as a financial cooperative, offering its members financial security through saving and borrowing. The Essex-based organisation pledged to provide affordable lending and flexible saving options for those residing or employed in the borough of Basildon, offering loans and savings products at more competitive rates than high street banks and building societies.
But following solvency and regulatory issues, the credit union collapsed in mid-March 2025. The organisation’s office in Basildon has closed with immediate effect, and the Financial Services Compensation Scheme (FSCS) is now in the process of compensating members of the credit union. All member funds below the £85,000 limit will be repaid in full – meanwhile, all loan members will be required to continue repaying their loans in this administration, in line with the loan agreement.
Most of the Essex-based firm’s 498 members would be paid by cheque within seven days, the FSCS said. Meanwhile, Emma Barrow, from the organisation, added customers could be “assured that their money is safe”.
Dina Devalia and Michael Kiely of business advisory firm Quantuma have also been appointed as joint administrators of financial cooperative. They will now work to assist any members who need support.
Devalia added, “Members of the Basildon Credit Union do not need to worry… We are working closely with the FSCS to ensure that all members will receive their money back as soon as possible. Our team is contactable to assist members with any queries that they may have on issues such as loan repayments or setting up new accounts for benefits payments.”
The start of 2025 has been a difficult period for credit unions. In January, this also saw the London Community Credit Union go bust, leaving 17,000 members without access to their accounts. The LCCU, which served members across several London boroughs, was placed into administration in January – with PKF Littlejohn Advisory taking charge to confirm the co-operative had ceased trading.