A state run company was left to fork out £21 million after a credit union failed.

On September 4 the Dial-A-Cab Credit Union Limited declared in default.

Based in London and jointly run by John Riley from Abridge, the organisation found itself unable to repay its 1,250 investing members.

The default meant the Financial Services Compensation Scheme was forced to fork out £21,000,000 within seven days of the failure being declared.

Jimmy Barber, chief operating officer at FSCS, said: “FSCS is committed to helping get people’s lives back on track by returning deposits as soon as we can.

"I’m pleased we’re able to return the majority of Dial-A-Cab customers’ deposits and that FSCS has lessened the disruption they would have otherwise experienced as a result of the credit union’s failure.”

Mr Riley said he was unable to comment as did Cork Gulley, which is currently administrating the company.

The 66-year-old went on to become director of Tiger Transport Ltd, which was subsequently liquidated in June 2018.

He also runs a car washing company and was formerly a taxi driver.