A CREDIT union has tumbled into administration, leaving all customers unable to use their accounts.
Scott & Mears Credit Services Limited (SMCS) went into administration on September 2 and has now ceased trading.
Scott & Mears Credit Services Limited has tumbled into administration[/caption]
Joint administrators Louise Longley and Julian Pitts of Begbies Traynor have been appointed to take control of the firm’s assets and operations.
The company tumbled into administration after seeking professional insolvency advice and as a result its directors recognised the firm was no longer solvent.
The administrators are encouraging customers to cancel any standing orders or other payment arrangements with SMCS.
They are also advising customers to contact their creditor, the company they owe money to, to arrange future payments.
Credit unions provide loans, savings, bank accounts and other services to their members.
They are designed to help the community, rather than make money and often accept people who have been turned down for accounts or loans elsewhere.
But more than 73 credit unions have gone under in the past decade.
Matt Bland, chief executive at the Association of British Credit Unions, has previously said: “We do unfortunately see a number of credit unions fail each year.
“Typically the credit unions that do fail are very small, with a few hundred or maybe a thousand people using them.”
Can I still use my account?
Normal operations including making a payment or withdrawal are usually paused or restricted when a firm collapses into administration.
It is not yet clear when or if you may be able to access your account.
You should contact the joint administrators before trying to get access to your account.
Will I get my money back?
In some instances, credit unions that fall into administration are protected by the Financial Services Compensation Scheme (FSCS), which means everyone gets their savings back.
The FSCS protects all accounts, up to a limit of £85,000 per person.
But there is no FSCS cover for customers in this instance, which means their money will not be returned.
What if I have a loan?
If you have made loan repayments to SMCS, the administrators understand that your obligation to the creditor was satisfied.
But if you only made a partial payment then the remaining balance of your debt still needs to be paid.
Once you have cancelled your standing order or any other payment arrangements with SMCS you should contact your creditor for more information.
If you have used SMCS to collect payments on your behalf then you should contact the joint administrators by emailing [email protected] or calling 0113 209 1040.
If you are struggling financially then you can get free and impartial advice from MoneyHelper.
Watch out for scam calls claiming to be from SMCS or Begbies Traynor.
If you receive one of these calls then hang up and contact the administrators using the number above.
Are you due a payday loan refund?
MILLIONS of payday loan customers may be due refunds.
Refund or compensation is often given where the loan was mis-sold or where affordability checks weren’t stringent enough. Here’s all you need to know:
- Customers who’ve paid off payday loans debts can still claim. Even if you’ve paid off your debts you may still be able to get a refund if you struggled to repay the money at the time.
- If you’re still paying off payday loan debts you can still complain. You can complain if you’ve struggled to make repayments. If your complaint is successful it could lower the amount you owe.
- You can still claim is the firm no longer exists. Big firms such as Wonga and QuidQuick no longer operate but that doesn’t mean you can’t get some money back. Customers can still make complaints about firms which no longer operate, although it is less likely that they will receive a refund as they will have to apply directly to administration firms. Although, if their complaint is successful and they still owe debts this could mean they have to pay back less so it’s still worth complaining.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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