Thousands of savers have their CU accounts closed

Thousands of savers with the defunct Newbridge Credit Union have had their accounts closed and their money returned to them.

Up to 15,000 savers got cheques in the post in the past few weeks from Permanent TSB, which took over the loans and savings of the bust credit union.

But those whose savings accounts were pledged against loans have had their accounts left in place.

Newbridge Credit Union was wound up after a late-Sunday night sitting of the High Court in November 2013, and its savings and loans transferred into the Permanent TSB branch in the Kildare town.

Up to €54m was set aside to be given to Permanent TSB to fund the transfer, but it is understood not all the money will be used.

Kildare Fine Gael TD Martin Heydon criticised the forced closing of the accounts, with thousands receiving a cheque he said they did not want.

He said there was now no credit union in the area. Efforts by Naas Credit Union to get Central Bank approval to extend its area of operation into Newbridge had yet to be approved. He said he met with the Central Bank to ask why the process was taking so long.

Junior Finance Minister Simon Harris told Mr Heydon in the Dáil that the regulators were considering the Naas application and “a final decision will be relayed in due course to the credit union involved”.

Permanent TSB said it was always the intention to close the credit union accounts.

Irish Independent – 3/3/2105