The Landsker Community Credit Union (LCCU) described the situation to its members in a letter: “Your savings are safe! Landsker Community Credit Union’s permission to take savings deposits, also to let saving members withdraw their money as well as to make any more loans, has been withdrawn by the Financial Services Authority”.
It continued: “You will get your savings back as action taken by the credit union ensures you will receive your savings via the Financial Services Compensation Scheme”.
The LCCU blamed its fiscal problems on bad debtors, according to the BBC. The letter said that the debtors “could not care less that they have borrowed the collective hard earned savings of other members in the community”.
It added: “The volunteer Board would like to let their good members know the names of bad debt members in their communities that have let them down, but unfortunately are not allowed to do so”.
Credit Unions are owned and controlled by their members and offer consumers, who do not qualify for ordinary banking facilities, with credit and loans at reasonable rates.
Members of the LCCU who have savings with the financial organisation have been advised to contact the Financial Services Compensation Scheme.