Quantuma appointed for Strathkelvin administration

Business advisory firm Quantuma has been tasked with the administration of Strathkelvin Credit Union. Three experts from the firm will serve as joint administrators for the financial cooperative.

Founded in 1996, the Strathkelvin Credit Union (SCU) acts as a financial cooperative offering its members financial security through saving and borrowing. Known as Kirkintilloch Credit Union until 2003, the union recorded a turnover of £86,000 in 2019.

However, after a difficult period of trading, the Financial Services Compensation Scheme (FSCS) has stepped in to protect SCU members, which ceased trading in February 2022, and is now in default. 

Reports confirmed the FSCS is aiming to compensate the 1,820 members of the credit union, sending each member a cheque for their balance automatically. Early estimates suggest the total compensation for SCU customers could be around £1.96 million.

Caroline Rainbird, CEO of FSCS, said, "We want to reassure members of Strathkelvin Credit Union and let them know that their savings are safe. FSCS has now stepped in and most members will receive their money by cheque directly from us within a few days.”

It is understood that the SCU’s downfall come as a result of regulatory breaches, which rendered it insolvent. Dina Devalia, Simon Bonney, and Ian Wright, all managing directors at Quantuma, have subsequently been appointed as joint administrators to the Dumbartonshire based company. All SCU loan members will be required to continue repaying their loans in this the administration.

Devalia stated, “Strathkelvin Credit Union members don’t need to worry as all of their money is safe... We are working with the FSCS to ensure that all members receive their money back as soon as possible. We’ll also be on hand by email or phone to assist members with any queries that they may have on issues such as loan repayments or setting up new accounts for benefits payments.”