Bad debts force long-established credit union to close

ONE of Warrington’s longest-established credit unions has closed – because of bad debts run up by some of its members.

North East Warrington Credit Union (NEWCU) , based at Telfer House in Cinnamon Lane, Fearnhead is in the process of informing the Financial Conduct Authority (FCA) that they are no longer trading.
A spokesman said today: “It isn’t supposed to be common knowledge yet, but we have closed. It is a very sad day. We are all volunteers here and we are very upset that we have had to close.
“The reason is bad debts run up by some members going back a number of years. We just could not carry on.”

A member who visited the NEWCU office contacted Warrington Worldwide after discovering they could not access their savings. She contacted the FSA after being told she would receive her money in “a couple of weeks.” But the FSA said they knew nothing about the closure.

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

The North East Warrington Credit Union – whose website still describes them 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, saving small amounts on a regular basis and covered the whole of Warrington.