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Tuesday 12 December 2017

Members of bust credit union to get big payout

Newbridge Credit Union
Newbridge Credit Union
Sarah McCabe

Sarah McCabe

MEMBERS of bust Newbridge credit union will enjoy a sizeable payout in April, it has been confirmed.

Some 30,000 members are set to receive a bumper once-off payment, even as credit union members in other parts of the country receive zero return on their savings.

The payment is being made by Permanent TSB, which in November took over Newbridge's troubled loans with the help of a €53.9m cash injection from the State – prompting large protests.

Permanent TSB said the decision was made to "recognise the support of members of the credit union during a period of significant unrest and uncertainty".

"This represents our commitment to the members of NCU," said Jimmy Nolan, the credit union's interim head of operations.

The members in question will receive a return of 1.5pc on the money they saved in the year ending March 2013.

This is significantly higher than the average returns paid out by the rest of the country's credit unions, which tends to be around the 1pc mark. Some opt to pay no interest on their member's savings at all.

Irish savers are increasingly turning their backs on credit unions because of this, a senior industry official warned last week.

Sharon Donnery, the registrar of credit unions, said the payment of a dividend was important in creating loyalty. She added that savings had dropped by a fifth on average among credit unions who hadn't paid out a dividend for two or more years since 2009.

Irish Independent

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