Bad debts bring down Cornish credit union
9:37am Monday 18th February 2013 in News
Cornwall and the Isles of Scilly Credit Union Limited has been placed into liquidation, with a promise that all savers will be compensated in full.
Cornwall and the Isles of Scilly Credit Union Limited, trading as Cornish Community Banking, was placed into liquidation following an order of the High Court on Friday, February 15, with Kevin Murphy and Richard Toone from Chantrey Vellacott DFK appointed liquidators.
The not-for-profit financial co-operative, which had its offices in Truro, was open for membership to anyone who lives or works in Cornwall or the Isles of Scilly.
It was owned and controlled by approximately 2,100 members with savings totalling around £550,000.
The directors of the credit union have attributed its failure to bad debts on loans made by the credit union.
Mr Murphy has stressed that all savers will be compensated in full.
“Every member of Cornwall and the Isles of Scilly Credit Union will get their money back in full, as they are protected by the Financial Services Compensation Scheme (FSCS),” he said.
“The FSCS has confirmed this process is automatic, so members do not need to act to get their money back. People with less than £1,000 will receive a letter to get cash over the counter at the Post Office, while anyone with more than £1,000 will receive a cheque.
“Members are advised that payments from their accounts will be stopped from the date of liquidation. Members are advised to notify the recipient of any payments and make alternative arrangements.
“If members have an outstanding loan with the credit union please continue to make your repayments using the usual method of payment.”
For further information, members are asked to refer to the notice on the credit union’s website at www.cornishcommunitybanking.co.uk.
The liquidators will be writing to all members shortly enclosing a statement showing the balances on members’ savings accounts together with the balances on any loan accounts.