Rush Credit Union to reopen, but only for loan repayments

Rush Credit Union (RCU) is to reopen this week but only to facilitate loan repayments, amid allegations of financial misappropriation and suspected money laundering.

RCU, which has about 11,457 members with savings worth €24 million, was placed into provisional liquidation last week following an application by the Central Bank.

On its website, RCU said its main branch in Rush would open as normal this week to facilitate loan repayments and the setting up of standing orders for future loan repayments only.

Deposit guarantee scheme

However, it said withdrawals could not be facilitated and members' eligible shares/deposits would be repaid via the State's deposit guarantee scheme, up to a ceiling of €100,000. It also said the RCU's Lusk office would not reopen.

The High Court last week heard the union had net liabilities of €2 million as well as a €4.73 million hole in its reserves.

Credit unions are required by the regulator to have at least 10 per cent reserves of total assets but RCU’s figure was minus 8.7 per cent.

The court was also informed that criminal prosecutions may be brought as a result of investigations into RCU, with gardaí notified of suspected money-laundering.

RCU members demanding their savings back were turned away last week as the crisis emerged.