The agenda for the York Council’s Cabinet meeting on Tuesday includes an item about the York and North Yorkshire Credit Union.
It is marked as “secret” with absolutely no explanatory papers made available for the public.
It is time for the Council – which originally sponsored the York Credit Union – to come clean about its future and explain why it has gone bust.
Depositors and creditors deserve to be kept in the picture. If there were any problems then the Council should have intervened long before now. (The Council had representation on the Board of the Credit Union together with some investments.)
The FCCS have issued the following statement http://www.fscs.org.uk/news/2012/november/youre-protected-fscs-t-jv27rs211/
“You’re protected, FSCS tells thousands of North Yorkshire Credit Union members
Thousands of North Yorkshire Credit Union members, which went bust today, will get their money back within the next week, says the Financial Services Compensation Scheme (FSCS). It’s stepping in to protect members of the credit union which has locations throughout Yorkshire.
FSCS protects consumers when authorised financial services firms fail. It has protected more than 4.5m people and paid out more than £26bn in compensation since 2001. It is pledging to pay back the credit union’s members within seven days. And it won’t take long. On average FSCS pays out in a few days.
The FSCS process is automatic. Members of the credit union will not need to lift a finger to get their money back. FSCS will use the credit union’s records to automatically send payments to members. FSCS protects savings up to £85,000.
People with less than a thousand pounds will receive a letter to get cash over the counter at the Post Office. Anyone with more than this will receive a cheque. This gives people their cash back quickly and gives them the most options for depositing it elsewhere, FSCS says.
About 5,000 savers have some £1.9m in North Yorkshire Credit Union.
Kate Bartlett, Director of Operations, says: “FSCS is protecting members of the North Yorkshire Credit Union. There is no cause for concern. We will get your savings back to you within one week. And you won’t need to lift a finger because the process is automatic.”
Answers to questions can be found by clicking here: http://tinyurl.com/Credit-union-Q-A