Chantrey Vellacott liquidators called to Severn Four Credit Union
Member loan defaults and a failed merger lead to Chantrey Vellacott liquidators’ appointment at Severn Four Credit Union
CHANTREY VELLACOTT liquidators have been called to Bristol-based Severn Four Credit Union.
Kevin Murphy (pictured) and Richard Toone from Chantrey Vellacott DF, were appointed liquidators to the credit union (SFCU).
The not-for-profit financial business was owned and controlled by approximately 1,700 members with savings of about £450,000.
A director for SFCU, David Hutt, said the Union had been losing money for some time with its biggest problem that more and more members were defaulting on their loan repayments.
Hutt added that the board hoped to rescue the Union’s future by merging with Bristol Credit Union. However, after five months consideration Bristol Credit Union rejected the merger and there was insufficient time to obtain further sources of funding.
Liquidator Murphy said: “Every member of Severn Four Credit Union Limited will get their money back in full, as they are protected by the Financial Services Compensation Scheme (FSCS).”
“The FSCS has confirmed this process is automatic, so members do not need to act to recover their funds.”
A credit union is a cooperative, not-for-profit financial institution. It is member-owned and controlled through a board of voluntary directors are elected by the membership and have a range of duties including setting dividend and loan rates. Members can save and borrow at reasonable rates from an organisation that is not geared towards making a profit.