GLASGOW North East MP Paul Sweeney has pledged to help "promote the recovery' of a collapsed credit union in a deprived area of the city.

The Evening Times revealed today that Greater Milton and Possilpark Credit Union Ltd has gone into administration, meaning it cannot repay deposits to its 4,205 members.

The Financial Services Compensation Scheme (FSCS) has stepped in to protect members.

The scheme will be compensating the vast majority of members of the Glasgow-based Credit Union within the next week.

Read more: Thousands at risk as Milton and Possilpark Credit Union goes into administration

Anyone with more than a balance of £1,000 will receive a cheque for their balance.

Paul Sweeney, Labour and Co-operative Party MP for Glasgow North East said: "I am dismayed to learn that the Greater Milton and Possilpark Credit Union was declared in default today. This means the credit union can’t pay money to its 4,212 members. 

"Credit Unions play a vital role in our communities to provide affordable finance to people, especially those who might otherwise might be at risk from exploitation by payday lenders and other rip-off finance companies like Bright House.

"As a Co-op MP I am a passionate champion of Credit Unions and will do everything I can to promote the recovery of a local credit union for the Milton and Possilpark area."