MORE than £1.2 million will be paid out to members of a Glasgow Credit Union after it stopped trading.

Yorker Credit Union Limited has gone into default, meaning it cannot re-pay deposits to its 1200 members.

The Financial Services Compensation Scheme (FSCS) has stepped in to protect the members who have been faced with losing their savings.

The statutory compensation scheme have said that they will compensate the “vast majority” of members within seven days “without them having to lift a finger”.

Credit union’s records will be used to automatically send payments out to the members.

People with up to £1,000 in their account will receive a letter to get cash over the counter at their local Post Office.

Anyone with more than £1,000 will receive a cheque for their balance direct from FSCS, which protects up to £85,000 of savings.

Since 2001, the scheme has come to the aid of 4.5 million people since 2001, while paying out over £26bn in compensation.

The total expected to the be paid out to Yoker’s members will be more than £1.2 million.

Mark Oakes, Head of Communications at FSCS, said: “We are protecting members of Yoker Credit Union Limited.

We’re here for you, and we’re ready to help.

“Your savings are protected up to £85,000, and joint accounts are covered for £170,000.

“You should get your money back within the week.

“The process is automatic, too, so you won’t have to apply for compensation.”

Yoker Credit Union was formed in 1989 and serves more than 1,000 adult members and around 200 junior members.

The branch was declared in default on April 18, 2017, after the FSCS was satisfied that it would not be able to repay deposits because of its financial circumstances and has no prospects of being able to do so.

The scheme is funded by the financial services industry and protects investment business, deposits, home finance and general insurance and can pay for financial loss if a firm cannot pay claims against it.