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As from 31st August 2010, Forest Savers fund is no longer at 5 High St, Coleford, Glos.

All enquires should be made to the Financial Services Authority at:-

25 The North Colonnade
Canary Wharf
London
E14 5HS

Telephone contact is Marcela Hashim on 0207 066 9102

The Financial Services Compensation Scheme can be contacted on 0800 678 1100

 

 

16th April 2010

Forest Savers Fund has experienced loan delinquency and despite the best efforts to recover this debt by our volunteers (many of whom commit over a day per week of their time voluntarily to running the Credit Union), we have encountered many borrowers who seem determined to avoid repaying loans which they took out.

This has led the Credit Union into financial difficulty as we have to make provisions against bad debt.

Our volunteers and directors of the Credit Union are saddened by this situation; our experience of running the Credit Union has shown us how much we have been able to help local people by providing much needed affordable credit. These loans are often provided for essential household furniture or appliances, or to purchase or repair vehicles which are essential for commuting to work in a rural area.

Unfortunately a number of irresponsible borrowers have undermined our efforts and we are no longer able to continue to provide this service.

The decision of the Financial Services Authority (FSA) to restrict our permission to only taking loan repayments meant that, amongst other services not available, members would not be able to access their own savings for the foreseeable future, i.e. until the FSA were satisfied. In order to enable members to access their own money a general meeting of the Credit Union decided to request a voluntary transfer of permissions in order that the business of the Credit Union be passed to the Financial Services Compensation Scheme (FSCS) so that members could have their money refunded through the Credit Union working with the FSCS.

What does this mean to Savers ?
The action taken by your Credit Union ensures that you will get all your money. We are restricted at present to pay any monies out, but once the FSA takes over totally, then members will be able to claim their monies back through the FSCS. This is guaranteed by an act of Parliament.

What does this mean to Borrowers ?
Whilst we are prevented from paying out monies, we are still licensed to collect money owing on loans. Your repayments will be the same, but please do not stop payment. Once the loan book is passed to the FSA, they will make use of collection agencies to collect debt payments. Can we remind you that if you do not pay and enforcement is taken, then the costs of the court and administration will be added to the debt. In some cases this will double or even treble the loan.

The Future
Many of the directors and volunteers of Forest Savers Fund will now be putting their time and energy into supporting Gloucester Credit Union to expand, which means they can offer Credit Union services across the whole county of Gloucestershire.

Our experience with Forest Savers has shown us how much of a difference access to our financial services providing much needed low-level affordable credit can make to members of our communities and we are determined not to allow the irresponsible behaviour of a few deprive the community of this valuable service.

The Present
The Credit Union Office will still remain open until the FSA complete the handover.

 

Al Jack
                      Chair, Forest of Dean Credit Union Ltd
 

 

 

 

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  Authorised and regulated by the Financial Services Authority [Registration No. 213673C]