Credit union folds amid historic debts – Dewsbury Reporter

[Legal Beagles]

A credit union has folded, affecting 2,600 members. Castle and Minster has closed after directors decided the business was no longer viable without further external support. All savings are protected and will be paid back to members. Castle and Minster chairman Andy Young said the decision was a last resort, and after a bid for […]
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[Amethyst]

Re: Credit union folds amid historic debts – Dewsbury Reporter

Little bit of an old story but missed it previously. Most people affected should have been refunded any savings by now.

[PAWS]

Re: Credit union folds amid historic debts – Dewsbury Reporter

This is sad, sad news. I know those who had shares /savings will get their money back but the Credit Union is an important organisation. It is there for so many who have fallen foul of the regular lenders and I was hoping to see all branches go from strength to strength.

[Guest]

Re: Credit union folds amid historic debts – Dewsbury Reporter

The FSA demands far more generous reserve to loans ratio than banks or building societies, odds are if this was a bank they would still be trading. It is a consequence of the board being volunteer and theoretically untrained.
It is a good argument for the smaller CUs to consolidate with other larger operations and hire trained accountants. We had similar problems where I live until 8 of the local CUs combined.