Pirate FM News

2,000 Savers Promised Money is Safe after Credit Union Goes Bust

news_money_pounds.jpg

Published by the Pirate FM News Team at 7:01am 18th February 2013 (Updated 3:30pm 18th February 2013)

More than two thousand people in Cornwall are promised they will get their money back, after their credit union went bust.

Cornish Community Banking has gone into liquidation blaming bad debts.

An official compensation scheme will mean around £550,000 is automatically repaid to savers.

Kevin Murphy from Chantrey Vellacott DFK appointed liquidators said: "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)

"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.

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.

Andrew Harvey, from Par-based The Financial Advice Centre, said: "I think it's worrying that a credit union has had to take these steps that they've had to do. People should look and make sure, with credit unions, that they have got the appropriate levels of protection in play. It's important to take those steps involved, and it's also important I think, to diversify.

"People now are looking for higher returns than what bank accounts can offer per se. The problem with that are there are risk factors that are involved with that. So, it's really important to take appropriate financial advice, really and truthfully, before tying up any money, I would say."

some great deals from pirate fm
Email Icon

Sign up for exclusive news, competitions and offers.
Proper Local News updates from Pirate FM

Suggested articles

Tyson Fury promises to knock out Deontay Wilder in Las Vegas fight

Sports News: Tyson Fury has vowed to knock out Deontay Wilder when the two meet for the WBC heavyweight title in Las Vegas.

Danny Cipriani to face Rugby Football Union disciplinary hearing

National News: Danny Cipriani is facing action from the Rugby Football Union (RFU) after an altercation outside a bar in Jersey.

Trending in Cornwall

Huge spike in demand at Cornwall's biggest hospital

Some staff at A&E are working almost double shifts

Over 1,600 drivers caught speeding in one week

Devon and Cornwall Police launched a summer crackdown

Teenagers cut off by tide at Cornish harbour

The pair were angling at Marazion late on Thursday

10 things you know only if you grew up in Truro

City secrets only true locals get!

Man winched from "unstable" cliff in Cornwall

Coastguards say it was the only way to rescue him

Woman impaled by BBQ skewer on Newquay beach

She was having a BBQ with family and friends

The scale of public toilet closures in Cornwall

The Duchy has lost over 200 in just two decades

VIDEO: Child falls from harbour wall in St Ives

A young girl was airlifted to Treliske on Thursday

New business park planned near a Cornish village

Critics are worried about problems like traffic

Two teenagers rescued from rip on Cornish beach

They were playing football close to the water’s edge

More news...

Pirate Extra Pirate 70s Escape LoveCornwall