CUSTOMERS of a Warrington-based credit union that has gone bust have been reassured that their funds are safe.

Members have been made aware that North East Warrington Credit Union (NEWCU) has entered voluntary liquidation after more than 25 years.

Following the move to close the business, which has an office on Cinnamon Lane in Fearnhead, administrators Leonard Curtis have been appointed to begin winding-up proceedings.

They have moved to allay fears from those who trusted the union with their money that it is safe and that they do not need to do anything.

In a statement, Leonard Curtis said: “NEWCU is a community co-operative and not-for-profit organisation.

“It was owned and run by its members for its members. Membership was based on people sharing the ‘common bond’ of living and/or working in the Warrington area.

“NEWCU provided its members with the ability to save or borrow money and provided services to those who had a low income and those who did not have a record of borrowing.

“NEWCU has entered administration as it is unable to meet its regulatory requirements because of a number of historic bad debts and has subsequently been declared insolvent.”

The statement goes on to say: “The Financial Services Compensation Scheme (FSCS) subsequently declared the company in default on May 4, 2022, which means it can step in and return money to members.

“The administrators have been liaising with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) regarding plans for winding down the business, and they will continue to work with the PRA, FCA and FSCS to achieve a satisfactory outcome.

“The administrators would like to assure customers that their funds are safe.

“In most cases, customers’ savings will be paid back to them within seven days of the date the firm was declared in default by the FSCS, being May 4, 2022. Customers do not need to do anything.

“The FSCS will automatically pay customers back their savings using the account information it receives from the Company. FSCS will contact customers by post.”

The FCA has also stated that the FSCS is stepping in to protect members and will return their money within seven days from May 4, when the credit union was declared in default.

But it is warning that all customers should remain alert to the possibility of fraud.

If you are cold called by someone claiming to be from the credit union, administrator, FSCS or the FCA, please end the call and contact that organisation directly.

There was a second credit union in Warrington called Warrington Credit Union which amalgamated with Unify Credit Union last October.

There is no relationship with NEWCU, and its members are not affected by the announcement.

Angela Fishwick, chief executive of neighbouring Unify Credit Union, said: “We are very sad to hear of the closure of NEWCU, which has served its community since 1994.

“The loss of the credit union to the local community is distressing for residents who have come to rely on the services provided by the dedicated volunteers, who have worked tirelessly to keep the credit union open.

“On behalf of the board of directors of Unify, I would like to reassure members that the closure of NEWCU is in no way related to Unify Credit Union.”

NEWCU members can still access credit union services through Unify Credit Union, and anyone interested in finding out more should call 01942 245656 or visit unifycu.org

“Having recently extended our common bond into Warrington, we are determined to build our presence in the town,” Angela added.

“We hope to work in partnership with Warrington Borough Council to bring a full-time credit union presence to Warrington to ensure residents can still access ethical financial services.”