Polish Credit Union UK has been placed in administration.

In an announcement on the company website, the Credit Union said that Dean Watson and Paul Stanley of Begbies Traynor have been appointed as Administrators.

Polish Credit Union UK was launched in 2013 and has 500 members under its name.

The union has been declared in default by the Financial Services Compensation Scheme (FSCS), which will ensure that all members will have their deposits returned to them.

Dean Watson, Administrator and partner at Begbies Traynor, said “All savers will have their balances returned by the FSCS. Savers do not need to do anything to get their money back and anyone with a deposit with the Credit Union should look out for a letter and monies in the post from the FSCS in the next few days. Our immediate priority is to work with the FSCS to ensure that all savers get their money back as quickly as possible. Staff from the Credit Union and Begbies Traynor are on hand to help savers with any queries that they may have. We have issued a letter to all members containing a Frequently Asked Questions worksheet and issued a statement on the Credit Union’s website providing further information and a link to the FSCS statement.”

“This case shines a light on the challenges that many credit unions face in engaging new members and responsibly increasing loan books required to ensure viability and regulatory compliance.”