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Credit Union refusing to allow withdrawals

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Credit Union refusing to allow withdrawals

Postby bloater » Sat Jan 17, 2015 10:40 pm

I have a ISA savings account with a Credit Union (UK based, regulated by the Prudential Regulation Authority). As they are part of the FSCS.

At the start of the year I received a letter from them saying that they had an inadequate capital adequacy ratio they had agreed with the PRA a number of measures including temporarily preventing customers from withdrawing their savings. This seems like a daft thing to do as if the restrictions are ever relaxed I suspect most customers including myself with withdraw their money immediately.

Where do I stand legally? If I try to withdraw my savings but they refuse can I get my money back via the FSCS?
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Re: Credit Union refusing to allow withdrawals

Postby diy » Sun Jan 18, 2015 9:24 am

Is the total amount within the protection limit?
http://www.fscs.org.uk/what-we-cover/el ... it-limits/
My suggestions are not legal advice
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Re: Credit Union refusing to allow withdrawals

Postby atticus » Sun Jan 18, 2015 10:03 am

That link looks useful.

The OP said his account is an ISA, so it seems unlikely to exceed the £85,000 limit.
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Re: Credit Union refusing to allow withdrawals

Postby dls » Sun Jan 18, 2015 10:46 am

Link added
David Swarbrick (Admin) dswarb@gmail.com - 0795 457 9992
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Re: Credit Union refusing to allow withdrawals

Postby dls » Sun Jan 18, 2015 10:49 am

To answer the question, the scheme t&Cs will (should?) include a right for the managers to do this, so it is unlikely to be a breach of contract.

It_may_ be that on re-opening the scheme they will offer an additional financial incentive to stay with them.

The money would appear to be secure in principle.

Patience is a virtue, and might be rewarded.
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Re: Credit Union refusing to allow withdrawals

Postby bloater » Sun Jan 18, 2015 3:39 pm

Yes the amount is within the £85k limit.
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