Credit union services return to Rush and Lusk

If you're in those areas, you'll be able to use Progressive Credit Union...

Credit union services return to Rush and Lusk

File photo | Image:

Members of the Progressive Credit Union – which operates six branches in North County Dublin – have agreed to extend their services to the towns of Rush and Lusk with Central Bank approval.

The move to restore services to customers affected by the recent credit union scandal comes after cheques repaying 9,700 Rush members were sent out under the terms of the State Deposit Scheme.

A High Court-appointed liquidator is to wind down the Rush branch following revelation of significant financial and compliance irregularities there. It had some 11,457 members with savings worth €24m. Savings up to €100,00 are guaranteed, with no member holding more than this amount in their account. 

The total amount of compensation paid was €22.3m, representing 98% of deposits covered by the Deposit Guarantee Scheme.

The High Court learnt last week that the Rush collapse is likely to lead to prosecutions over suspicions of fraud.

Serious issues with lending practices, control of cash and the day-to-day running were uncovered as it became apparent that the credit union's safe was being used to hide money from Revenue. There were also questions raised around how prize draws were conducted after a senior staff member won a number of cars.