Bad debt forces long-established credit union to close

ONE of Warrington’s oldest credit unions has closed – due to bad debt accumulated by some of its members.

North East Warrington Credit Union (NEWCU), based at Telfer House in Cinnamon Lane, Fearnhead is in the process of notifying the Financial Services Authority (FSA) that it is no longer trading.
A spokesperson said today: ‘It’s not meant to be public knowledge yet, but we’ve closed. It is a very sad day. We are all volunteers here and we are very upset that we had to close.
“The reason for this is bad debts accumulated by some members over a number of years. We just couldn’t go on.

A member who visited the NEWCU office contacted Warrington around the world after discovering that they could not access their savings. She contacted the FSA after learning she would receive her money in “a few weeks”. But the FSA said it knew nothing of the shutdown.

The NEWCU spokesman said today: ‘The reason for this is that the forms we need to send to the FSA will not have reached them yet.
“But I can 100% assure members that they will get their money back in a few weeks.”

The North East Warrington Credit Union – whose website still describes it as “Warrington’s pre-eminent credit union – dates back to 1993 when it was formed as Poulton North Savings Club. It acquired credit union status the following year and in 2002 merged with Poplars Credit Union to form NEWCU.
It attracted hundreds of members, regularly saving small sums and covering the whole of Warrington.

Previous What credit score is needed to refinance my mortgage? – Forbes Advisor
Next What credit score is needed to buy a house? – Forbes Advisor