north yorkshire credit union

nickstarmer

hi does anyone know if north yorkshire credit union has gone in to liquidation whole or a division of it ? just my other half can not get any money out tried to ring with no joy, any info would help to find the problem cheers nick

Googleplex

The website seems to indicate that they have gone into liquidation unfortunately; HOWEVER they do say they have FSCS cover so money is protected.

Hope that it all gets sorted as soon as possible!

I can't post links here, but if you search for North Yorkshire Credit Union in a search engine their website comes up, and all the info is on their homepage.

dr_adidas01

If you check out this link it will tell you everything you need to know.

http://www.nycu.org.uk/

Yorkie1

Radio York has been covering this today.

The FSCS is in touch with the liquidator, and will repay all savers within a week. Everyone should get all their money back, as the person from the FSCS didn't think that anyone was over the £85K limit per person.

Those people who have loans should continue to repay them as the liability remains in existence.

nickstarmer

hi thanks for the replies ,seems all sorted just got to work through the direct debits and get my other half all set and rolling

Milarky

One of the differences between credit unions and banks or building societies (although covered by the same depositor protection scheme) is the near impossibility that a more successful brethren could take under management a failing or less successful one. Contrast with how the old boys' network swung into operation to salvage the odd bank and (several more) building societies - e.g. Nationwide has three!

That seems wrong to me. If the credit union 'movement' is to be taken seriously as anything more than a home for distressed borrowers the financial regulation has to be better.

Mergers, for example and other forms of amalgamation which could see individual liquidations avoided would need to be underwritten with some injection capital from outside the CU sector itself. But the basic legal framework (of 'mutual' societies) makes that impossible.

But it's more a case of 'who cares?' (like FarePak) because that would cost as little as £50 million, whereas Halifax alone (they owned Farepak) were 'lent' £61bn one afternoon at the height the crisis in 2008 - a sum which Merv wasn't even going to mention until it came out.

[So a liquidation probably, and some delay before the cash is returned but all deposits ought to be safe]

premierfella

I have personal experience as a member of a credit union that failed (and was always likely to to be honest given the demographics in its catchment area and its small size - it survived for a while only with lottery funding and council grants) and it was taken over by a neighbouring credit union. But I agree that such examples are rare, and the ending of some grant funding (I'm picking this up from the news item on the website - I have no knowledge of NYCU) does seem to crop up as a theme in credit union failures.

Yorkie1

The main issues in the failure of NYCU seem at this stage to include:
- over expansion too quickly (it used to cover just York, successfully, for some years before expanding to cover the whole of N Yorks)
- high overheads
- insufficient loans being repaid properly
- over-reliance on non-recurring grant funding

South Yorkshire Credit Union has already said it would like to set up two offices in N Yorks, subject to receiving £100K grant funding from relevant councils. They have been established for 10 years and say that their business plan is more stable as they make loans on a face-to-face basis rather than through the post.

shepochu

South Yorkshire Credit Union may be setting up in place of North Yorkshire Credit Union, depending on funding from York, Scarborough and North Yorkshire County Council.

innovate

FSCS site has a Q&A: http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-north-yorkshire-e8bnss21s/