Belfast Telegraph

Savers to get cash back after Rowallane Credit Union is liquidated

By John Mulgrew

A Co Down credit union which has around 700 members has been placed into liquidation.

But those who had saved with Rowallane Credit Union are due to get their money back under a government scheme which protects deposits.

The credit union is registered to Saintfield Orange Hall and has around £1.4m on deposit for its members.

Now, the Financial Services Compensation Scheme (FSCS) has said it has made payment to more than 700 members of the group.

The payments were "in the post" just after the credit union went into liquidation on Wednesday, August 19, the FSCS said.

Mark Oakes from the scheme said: "FSCS protects people when authorised financial services firms cease trading.

"I'm pleased to confirm FSCS payments have now been made to members of Rowallane Credit Union. It is good news for those members."

According to the FSCS, members with less than £1,000 will receive a letter, allowing them to get cash over the counter at the Post Office, while those with greater amounts will receive a cheque.

Just last year Ballymacarrett Credit Union, based on the Albertbridge Road in East Belfast, also went bust.

It held savings of around £530,000, with all savers getting their cash back through the FSCS scheme.

The FSCS protects savings up to £85,000. That covers around 98% of those in the UK with a bank, building society or credit union account.

Since its inception in 2001 the FSCS has protected more than £4.5m and paid out in excess of £26bn.

Credit unions were formalised in Northern Ireland in 1986, when the Ulster Federation of Credit Unions (UFCU) was set up.

It was established by community leaders in south Belfast who wanted to encourage community enterprises which could support people in the area.

Belfast Telegraph