Chantrey Vellacott DFK liquidators to community bank

Kevin Murphy and Richard Toone from Chantrey Vellacott DFK have been appointed liquidators of Cornwall and the Isles of Scilly Credit Union Ltd, which was trading as Cornish Community Banking.

The not-for-profit financial co-operative, which had its offices in Truro, was open for membership to anyone who lived or worked in Cornwall or the Isles of Scilly. Owned and controlled by approximately 2,100 members, it had savings totalling around £550,000.

The directors have attributed its failure to bad debts on loans made by the credit union.

Chantrey Vellacott DFK partner, Murphy, stressed that all savers will be compensated in full, as they are protected by the Financial Services Compensation Scheme (FSCS).

He said: 'The FSCS has confirmed this process is automatic, so members do not need to act to get their money back. People with less than £1,000 will receive a letter to get cash over the counter at the Post Office, while anyone with more than £1,000 will receive a cheque.'

Payments from members' accounts were stopped from the date of liquidation, while members with outstanding loans with the credit union have been advised to continue making repayments.

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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