MEMBERS of the North East Warrington Credit Union which has closed due to bad debts are reassured by the administrators that their money is safe.
The Members Committee of North East Warrington Credit Union (NEWCU) Limited yesterday (May 4) decided to place the company in administration by appointing Mike Dillon and Andrew Poxon of Leonard Curtis Group as joint administrators.
As revealed exclusively Warrington around the world Earlier this week NEWCU, based at Telfer House in Cinnamon Lane, Fearnhead were in the process of informing the Financial Services Authority (FSA) that they were no longer trading, blaming bad debtors for their closure.
NEWCU is a community cooperative and non-profit organization. It was owned and run by its members for its members. Membership was based on people sharing the ‘common bond’ of living and/or working in the Warrington area.
NEWCU gave its members the ability to save or borrow money and provide services to those with low incomes and those with no borrowing history.
NEWCU entered administration as it was unable to meet its regulatory requirements, due to a number of historical bad debts and was subsequently declared insolvent.
The Financial Services Compensation Scheme (FSCS) subsequently declared the company in default on May 4, 2022, meaning it can step in and return money to members.
The administrators have liaised with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) regarding plans to wind down the business and they will continue to work with the PRA, FCA and FSCS to achieve a satisfactory outcome .
Administrators are keen to assure clients that their funds are safe. In most cases, customers’ savings will be returned to them within seven days of the date the business was declared in default by the FSCS, which is May 4, 2022. Customers do not need to do anything.
FSCS will automatically refund customers their savings using the account information it receives from the Company. FSCS will contact customers by mail.
The administrators have published detailed guidance on next steps for customers on their dedicated administration webpage www.leonardcurtis.co.uk/NEWCU.
This website will be used to provide further updates and information as appropriate and customers are encouraged to monitor the website on an ongoing basis.
For all customer, creditor and non-press related inquiries a dedicated email address has been created [email protected] and we encourage all inquiries to be made through this channel. Leonard Curtis is part of the Leonard Curtis Group.
Bad debt forces long-established credit union to close