In the
Event of
Failure

Credit union and bank failures are very rare in Canada – the last B.C. credit union failure was in 1989. Canada’s financial system is one of the safest and strongest in the world, and CUDIC contributes to the stability of B.C.’s financial services sector by providing deposit insurance.

1. In the unlikely event that a credit union fails, CUDIC will arrange prompt payment of all insured deposits. All you have to do is keep your contact information with your credit union up to date;
2. If a credit union fails and must be wound up, BCFSA and an appointed liquidator will take control of the credit union;
3. CUDIC will begin the process of reimbursing depositors. A payout schedule that details when and how depositors can expect to receive their deposit insurance will be posted at cudicbc.ca; and
4. CUDIC will set up a dedicated website and toll-free line to answer depositors’ questions.

Payout Procedure

If your credit union fails, here is what you should know about your deposit insurance payment:

• CUDIC will most likely reimburse you by cheque. Tax-protected accounts, such as Registered Retirement Savings Plans (“RRSPs”) or Registered Retirement Income Plans (“RRIP”), will be transferred to another institution to maintain their tax-protected status;  
• CUDIC will issue your deposit insurance payment based on information at your credit union. Please ensure that your contact information with your credit union, including your mailing address, email address, and telephone number, is accurate and current; 
• If deposits go unclaimed, CUDIC will publish notice of unclaimed deposits at www.cudicbc.ca. After a certain date, any unclaimed deposits will be transferred to the B.C. Unclaimed Property Society.