High Court shuts down Credit Union

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Herefordshire-based Marches Credit Union Limited has gone into liquidation following an order issued by the High Court.

However, members of the Union have been assured that savings and deposits will not be affected.

The liquidation follows action taken by directors who brought certain undisclosed matters to the attention of police which are subject to on-going investigations.

Guy Mander and Graham Bushby of Baker Tilly Restructuring and Recovery LLP, have been appointed liquidators of the Union.

Guy Mander, joint liquidator, said steps have been taken to inform all members that their savings are protected.

He explained: “We have immediately written to all members and juvenile depositors to provide them with information as regards FSCS, details of alternative local credit unions and other steps they may wish to take.”

Following the winding up order, March Credit Union Limited, which employs approximately 400 members, is no longer able to accept deposits or make loans.

The Financial Services Compensation Scheme (FSCS) has confirmed to the liquidators that members’ deposits/savings will be protected under the FSCS and that they will aim to reimburse members within seven days of the winding up order.

The FSCS protects savings up to £85,000 and investments up to £50,000 for authorised financial companies registered in the UK.

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