The Lower Iveagh Credit Union’s hundreds of members have been assured they will get their money back after news emerged that the Dromore-based savings and loan company had gone bust.
Set up in 1995 and operating out of Dromore Orange Hall, Lower Iveagh Credit Union Ltd reportedly holds savings of around £400,000; it wound up on Wednesday (November 19), the Financial Services Compensation Scheme stepping in to protect its 440-or-so members.
Though not associated with the Lower Iveagh Credit Union, Banbridge Credit Union nevertheless reported receiving a number of calls from concerned members of the public when news broke of the Dromore company’s demise.
The FSCS said the overwhelming majority of savers would get their money back within seven days.
People with less than £1,000 saved would receive a letter to get cash over the counter at their post office, while anyone with savings of more than £1,000 would receive a cheque.
Kate Bartlett, Director of Operations for FSCS, said: “FSCS is protecting Lower Iveagh Credit Union members. 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 last set of published accounts for the Lower Iveagh Credit Union were for the year to September 2012 and its auditors said the loan and share balances appeared to be “materially incorrect”, adding they could not “quantify the financial effects of the misstatement” as they didn’t have access to customer passbooks.
They also reportedly found clerical errors and book-keeping mistakes.