Tuesday, August 18, 2009

Credit Union Crisis

Please help with our campaign to protect Britain's Credit Unions from closure

The FSA are making credit unions pay for the bank failiures by taxing them to contribute to the Financial Services Compensation Scheme. Up to now Credit unions have not had to contribute. We are not sure how much each Credit Union has to pay but for one credit Union in Scotland this is £75,000 and payment is due 1st September 2009.

South Manchester CU is saying "If our contribution is anything like this we will close and ironically our members will claim their shares back from the FSCS."

According to the regulations Credit Unions are viewed by the FSA as the same as Banks. If implemented this will close down most Credit Unions in the country.

Write to Gordon Brown/Alistair Darling, John McFall and Lord Myners, do it now!
If we lose our credit unions then we will let the loan sharks - and the banks - have their head in our poorer areas. Already Kensington and Fairfield people are paying £1.80 to use cashpoint machines in our area. We need our credit unions.

You can write to them all c/o

Houses of Parliament

Or use this form https://email.number10.gov.uk/


Paul said...


It seems that the FSCS payments due for most CUS might not be as high as the Scottish Credit Union were saying. They have a bill for £75000 and they have 4000 members. On this basis credit unions with a 1000 members could get a bill for about £15000 which is still a massive amount and would force many to close. But it seems most CUs will only have pay a few hundred pounds which may not force them to close, but there is a principal at stake - why should credit union members pay for greedy bankers.



scouseboy said...

I find it incredible that a Labour Government could penalise a system prmarily set up to help poor people and keep them at bay from loan sharks. I certainly will be e-mailing the relevant people. It may also be useful to raise the issue with your local MP, as I intend to do.

Louise Baldock said...

Scouseboy, the FSA is not the Government, don't be making that mistake. We are going to ask the Government to curb the FSA. I fully expect our MPs to be on our side, especially those who are co-operators - which includes the PM incidentally.

scouseboy said...

Ok Louise, point taken

Jim said...

Why can't I find anything on this anywhere including the Associaiton of Credit Unions website?

Barrie said...

Lou the Darling email you have is wrong that was when he was at the department for transport! x

Jan Clein said...

Sorry Louise, I don't think the Labour Government can distance themselves from this. Below is wording taken from the FSA website & here is the link ;-


The Treasury appoints the FSA Board.

The FSA is accountable to Treasury Ministers, and through them to Parliament.