19 February 2013 Last updated at 05:45 ET

Cornish credit union to return money within seven days

Members of a Cornish credit union which has gone into liquidation will receive their money back within seven days, a financial scheme has said.

The Cornwall and Isles of Scilly Credit Union, which had 2,100 members, closed on Friday following a High Court order.

The Financial Services Compensation Scheme (FSCS) said members would receive a letter or cheque to retrieve their money within the next seven days.

Standing orders due on 18 February or later would be cancelled, it said.

'Be patient'

Malcolm Kewn, who volunteered and banked with the scheme, said: "We've been making it clear to our members that their savings are protected.

"There's no need to worry, but they should be patient and the FSCS is expecting to sort their money out by the end of the week."

The credit union, which traded as Cornish Community Banking, provided loans, savings accounts and current accounts and had about £569,000 in the scheme.

It went into liquidation after the directors said the organisation was insolvent and its liabilities exceeded its assets.

The credit union is open in Truro and Penzance from 10:00 to 16:00 GMT until Friday this week so people who had benefits paid in can access a hardship fund approved by the liquidator.