Newbridge Credit Union transferred to Permanent TSB
The High Court has approved the transfer of the loans and savings of Newbridge Credit Union to State-rescued bank, Permanent TSB.
It is the first time a bank has taken control of the assets of a credit union.
In a late-night sitting, the High Court granted the controversial application to the regulator despite fierce opposition from members of the Kildare lender.
The Central Bank stressed that members’ money is safe. Savings in credit unions are state-guaranteed up to €100,000, it said.
It is sure to spread fear among the 2.8 million people who are members of 392 credit unions in the State that other struggling credit unions will now be forcibly taken over by banks.
People will loans and savings at Newbridge will now be dealing with a bank. A courts appointed special manger at Newbridge Credit Union will now be discharged.
This is the first-ever move to get a bank to take ownership of a credit union. Credit unions are owned and controlled by their members.
Charlie Weston, Personal Finance Editor