A credit union based in London with more than 500 members has been placed in
Dean Watson, partner at leading insolvency advisers Begbies Traynor and a specialist in credit unions, has been appointed as Administrator of Polish Credit Union UK Limited (“the Credit Union”).
The Financial Services Compensation Scheme (FSCS) has also declared the credit union in default, which means that savers will receive their deposits back.
The Credit Union has a single branch in West Ealing, London. It was launched in 2013 to provide savings accounts and loans for the Polish community. It has more than 500 members.
Dean Watson, Administrator and partner at Begbies Traynor, said:
“All savers will have their balances returned by the FSCS. Savers do not need to do anything to get their money back and anyone with a deposit with the Credit Union should look out for a letter and monies in the post from the FSCS in the next few days.
“Our immediate priority is to work with the FSCS to ensure that all savers get their money back as quickly as possible. Staff from the Credit Union and Begbies Traynor are on hand to help savers with any queries that they may have. We have issued a letter to all members containing a Frequently Asked Questions worksheet and issued a statement on the Credit Union’s website providing further information and a link to the FSCS statement.
"This case shines a light on the challenges that many credit unions face in engaging new members and responsibly increasing loan books required to ensure viability and regulatory compliance.”
Dean is a Qualified Accountant (FCCA) and Licensed Insolvency Practitioner with over 25 years experience in the accounting profession. Dean joined Begbies Traynor in 1999 after spending 10 years working in general audit and accountancy practice. Based in the Manchester and Preston offices, he has worked on a variety of assignments including formal insolvency appointments and providing advice to various stakeholders in situations where financial distress is present.
Dean has gained significant experience in the Legal Sector after dealing with a number of distressed Legal and other professional services firms in recent years and jointly heads up the North West Professional Services team.
As well as business reviews and formal insolvency appointments, practical solutions and hands on turnaround assignments have also been one of Dean’s main focuses. This has generally been in support of high street clearing banks and other financial institutions.