Credit union folds amid historic debts

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A credit union has folded, affecting 2,600 members.

Castle and Minster has closed after directors decided the business was no longer viable without further external support.

All savings are protected and will be paid back to members.

Castle and Minster chairman Andy Young said the decision was a last resort, and after a bid for further support to Kirklees Council, they were turned down.

Mr Young added: “This is an incredibly sad day, and is not a reflection of the current staff and board of the credit union.

“We have just had a profitable quarter, but the historic debts which have been part of the legacy of previous boards and officers just could not be reconciled to the satisfaction of auditors and the board of directors.

“I want to thank the current staff for their hard work in trying to keep Castle and Minster open, and generate new income, which we were on track to deliver.

“However, without a further loan, we cannot overcome the previous financial issues.”

The Financial Services Compensation Scheme protects savings in credit unions up to £85,000 per person, so all Castle and Minster members will receive the full value of their savings. In most cases this will be within the next two weeks. Anyone with a loan agreement must continue to pay back their required amounts as usual.

Member who have savings and a loan will be dealt with separately and the amount still owing will not be deducted from the repayment of savings. Appointed liquidators will write to those who have loans owing to the credit union shortly.