BANTRY CREDIT UNION is to begin providing credit union services for the people of the Beara Peninsula – weeks after it was announced that Berehaven Credit Union was to be liquidated.
The decision was taken by the Board of Bantry Credit Union at their meeting last night.
Fine Gael TD for Cork South West, Noel Harrington, said the news is “really welcome”.
The Board took this decision at their meeting last night and also agreed to open the office this morning for the purpose of opening accounts. The credit union will operate from the existing premises in Castletownbere.
He added:
This represents the first stage in reinstating a fully functioning credit union presence in Castletownbere.
Berehaven Credit Union was wound up by The Central Bank on Wednesday 23 July.
A total of 85% of the 3,500 members of that Credit Union received their savings by cheque, just one week following the closure. The remainder will be issued over the coming days, said Harrington.
The regulator said that Berehaven Credit Union is “no longer viable as a stand alone credit union” on 23 July.
A statement said that “alternative options to resolve the serious financial difficulties at the credit union were examined but were found not to be feasible”.
It added that there were serious financial difficulties at the credit union in Berehaven due to “poor governance, lending practices and a lack of internal controls”.
Berehaven Credit Union members did not need to apply for the compensation from the Deposit Guarantee Scheme, as cheques were posted to their address automatically.
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