Northern Ireland

Ballymacarrett Credit Union goes bust but savers' money is safe

Money
Image caption All the savers in Ballymacarrett Credit Union will get their money back under the government's Financial Services Compensation Scheme (FSCS)

An east Belfast credit union with around 1,000 members has gone bust.

However, all the savers in Ballymacarrett Credit Union will get their money back under the government's Financial Services Compensation Scheme (FSCS).

The credit union, which is based on the Albertbridge Road, holds savings of around £530,000.

The FSCS said the overwhelming majority of savers will get their money back within seven days.

People with less than £1,000 saved will receive a letter to get cash over the counter at their post office.

Anyone with savings of more than £1,000 will receive a cheque.

Mark Oakes, head of communications for the FSCS, said: "We're ready to help. Your savings are safe and we will get your money back to you within the next week.

"The process is automatic so you won't have to apply for compensation. We will pay up to £85,000, so every member of the credit union is protected."

Those with loans from the union will continue to repay on the same terms.

The most recent accounts for the credit union show that it ran a deficit in 2012 and 2013 as a result of "increased provisions for bad and doubtful debts".

In 2012, the deficit was £30,500 and in 2013 it was £6,500.

A note in the accounts adds that the directors were "reviewing lending procedures".

This is not the first credit union in Northern Ireland to be wound-up.

Two Portadown credit unions - Portadown Diamond and Carleton Street - became insolvent in 2013.

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