A CREDIT union based in Bournemouth has gone into administration.

Enterprise The Business Credit Union – which traded as DotComUnity Credit Union – had almost 1,900 members with some £7m in savings.

All depositors in the credit union are being compensated by the Financial Services Compensation Scheme, up to a maximum of £85,000. Many have already received their cheques.

Between September 2011 and September 2012, the credit union was told by the Financial Services Authority not to accept deposits because it had not kept enough capital.

The credit union was based in Enterprise House in Oxford Road, Bournemouth.

Jo Milner, partner with administrators Cork Gully, said: “They weren’t able to remedy those and other breaches to the satisfaction of the Prudential Regulation Authority.

“There was a threat of its commission being withdrawn. The only way you can avoid that is to go through the insolvency process.”

She added: “The loan book is nationwide although the emphasis is on the south coast. Most of the members are locally based as well.

“There’s been a very quick payout by the financial services compensation scheme, which is good news for all depositors.”

The Financial Services Compensation Scheme automatically sent payments to members of the credit union, using the union’s records.

Kate Bartlett, director of operations for FSCS, said: “FSCS is protecting Enterprise The Business Credit Union members. We’re here for you and we’re ready to help.

“Your savings are protected up to £85,000, and we will get them back to you within the next week. The process is automatic so you won’t have to apply for compensation.”

FSCS is funded by financial services firms through a compulsory annual levy.

Anyone who has loans with the credit union should continue making their repayments, the administrators say.

Questions about the administration can be directed to ebcu@corkgully.com. Information about compensation from FSCS can be found at fscs.org.uk or by calling freephone 0800 678 1100 or 020 7741 4100.