MEMBERS of the North East Warrington Credit Union that has closed due to bad debts are being reassured by administrators that their money is safe.
The members’ committee of North East Warrington Credit Union (NEWCU) Limited, yesterday (May 4) resolved to place the Company into Administration appointing Mike Dillon and Andrew Poxon of Leonard Curtis Group as Joint Administrators.
As exclusively revealed by Warrington Worldwide earlier this week, NEWCU, based at Telfer House in Cinnamon Lane, Fearnhead was in the process of informing the Financial Conduct Authority (FCA) that they are no longer trading, blaming bad debtors for their closure.
NEWCU is a community co-operative and not-for-profit organisation. 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 provided its members with the ability to save or borrow money and provide services to those who had a low income and those who did not have a record of borrowing.
NEWCU has entered Administration as it is unable to meet its regulatory requirements, because of a number of historic bad debts and has subsequently been declared insolvent.
The Financial Services Compensation Scheme (FSCS) subsequently declared the Company in default on 4th May 2022 which means it can step in and return money to members.
The Administrators have been liaising with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) regarding plans for winding down the business and they will continue to work with the PRA, FCA and FSCS to achieve a satisfactory outcome.
The Administrators would like to assure customers that their funds are safe. In most cases, customers’ savings will be paid back to them within seven days of the date the firm was declared in default by FSCS, being 4th May 2022. Customers do not need to do anything.
FSCS will automatically pay customers back their savings using the account information it receives from the Company. FSCS will contact customers by post.
The Administrators have published detailed guidance on the next steps for customers on their dedicated webpage for the Administration www.leonardcurtis.co.uk/NEWCU.
This website will be used to provide further updates and information as and when appropriate and customers are encouraged to monitor the website on an ongoing basis.
For all customer, creditor and non-press related enquiries a dedicated email address has been set up [email protected] and we would encourage all queries to be directed via this channel. Leonard Curtis is part of the Leonard Curtis Group.
3 Comments
Hope the savings are repaid soon
This article and the last repeatedly reference the FSA, a regulatory body that has not existed for a decade. Perhaps do some research before publishing ‘worldwide’.
Many thanks for pointing this out – it isn’t the first and it wont be the last time we get this wrong as it is difficult to keep up to speed with every organisation and name changes. The person interviewed in the first article clearly didn’t know about the name change either.