Six Towns Credit Union goes under

4justice2

The subject of FSCS protection comes up frequently. Saw this in our local newspaper, Sandwell based Credit Union has failed. FSCS to step in.

https://www.expressandstar.com/news/business/2023/09/05/credit-union-is-declared-in-default/

Bazzalona13295

4justice2 said:

The subject of FSCS protection comes up frequently. Saw this in our local newspaper, Sandwell based Credit Union has failed. FSCS to step in.

https://www.expressandstar.com/news/business/2023/09/05/credit-union-is-declared-in-default/

We're doing great in the West Midlands today aren't we 😒

happybagger

What a shame that article was about the FSCS and told us nothing about what happened at the CU (other than 'it failed")

4justice2

happybagger said:

What a shame that article was about the FSCS and told us nothing about what happened at the CU (other than 'it failed")

It is odd that the big issue, why did the CU fail, and are other CUs in a similar trouble isn't even raised! 
But, I get the impression the whole article was copied from an FSCS press release with no new journalism!

Swipe

4justice2 said:

happybagger said:

What a shame that article was about the FSCS and told us nothing about what happened at the CU (other than 'it failed")

It is odd that the big issue, why did the CU fail, and are other CUs in a similar trouble isn't even raised! 
But, I get the impression the whole article was copied from an FSCS press release with no new journalism!

Local papers for you.

Malthusian

happybagger said:

What a shame that article was about the FSCS and told us nothing about what happened at the CU (other than 'it failed")

Not enough customers paid their loans back. The end.
I'm guessing of course, but small credit unions go under every year and it rarely makes the news beyond dull local paper stories like these. If there's no allegations of mismanagement (a la the Dotcomunity collapse in 2015) it's safe to assume it collapsed for the same reason as every other failure of a small business - money out > money in.
There's not much point in local journalists trying to pad out a press release when there's nothing interesting to find out and the only avenue of inquiry is to ask the credit union to give them a bland PR statement. (Unfortunately blah blah challenging conditions blah blah Covid Brexit Suez Crisis blah blah FSCS again blah blah.)
If you're a local journalist and the bobbies release a statement saying "A 30-year-old man was bitten by a 9-year-old dog" you don't spend hours trying to find out why the dog did it so you can turn it into a "the long read" and a podcast, you take the press release, change a few words, file your "Dog bites man" story and go down the pub.

happybagger

I see your point, to a point. Dog bites man because dog put teeth into man.
CU failed, but we get absolutely nothing. Your assumption may well be right, but we get nothing.
As was said above, it's local papers. Press release, they report the release, or copy and paste from the internet now they WFH. Reporters, not journalists.
(which is why local papers close, but that's an off topic story).

boingy

Our local paper now has just one full-time reporter, one apprentice and a part-time photographer - they recently moved out of their town centre office. Most of the stories are syndicated or straight from social media, complete with bad photos. We regularly get stories about water leaks, fires, burglaries, accidents and similar where the story doesn't even tell you where the incident happened. Of course, they have no money and the quality reflects that. They also rehash stories on the website by slapping "Update" on them but there is often no update!

Sad to see another CU go under but they tend to be very small affairs and often run very close to the wire, which means it only takes a few extra defaults to cause them problems. That article mentions 7400 members and a total compensation bill of £1million. 

Albermarle

Our local paper now has just one full-time reporter, one apprentice and a part-time photographer - they recently moved out of their town centre office. Most of the stories are syndicated or straight from social media, complete with bad photos. We regularly get stories about water leaks, fires, burglaries, accidents and similar where the story doesn't even tell you where the incident happened. Of course, they have no money and the quality reflects that. They also rehash stories on the website by slapping "Update" on them but there is often no update

Also usually their websites are so crammed with adverts/videos/clickbait, it is very difficult to read any articles anyway !

Malthusian

boingy said:

Sad to see another CU go under but they tend to be very small affairs and often run very close to the wire, which means it only takes a few extra defaults to cause them problems. That article mentions 7400 members and a total compensation bill of £1million. 

I.e. £135 per member (although some or even most of those members will have negative balances, of course). Chips with your nothingburger?
At least if the local news story is boring and short, that means much less time in which you'll be exposed to ads telling you how Martin Lewis is making everyone rich with the Quantum Bitcoin System or how a single mum of 22 badgers paid off all her debts with 500 free spins on 888luckykidzbingo.com.

boingy

Malthusian said:

 ads telling you how Martin Lewis is making everyone rich with the Quantum Bitcoin System

That sounds great - that Martin is a cool guy. I've only been using the standard Bitcoin system so I'm definitely interested in upgrading to QBS. Do you have a suspicious-looking link I can click to find out where to send the money?

I use an ad blocker on the local rag's website which works but also blocks the user comments section, which means I miss out on the superbly entertaining user comments section where you really to get to see the real-life Little England.