Progressive Credit Union wants to buy Rush loan book and office

Rush Credit Union has €4.7m hole in reserves amid allegations of money laundering

Depositors of Rush Credit Union began receiving compensation payments on Friday

Depositors of Rush Credit Union began receiving compensation payments on Friday

 

Progressive Credit Union in north Dublin is interested in purchasing the loan book and main office of Rush Credit Union (RCU), which had a provisional liquidator appointed on November 1st.

McStay Luby is expected to move to put the loan book and buildings in Rush and Lusk up for sale if its appointment is confirmed by the court on November 21st.

Rush Credit Union is technically insolvent with a €4.7 million hole in its reserves – amid allegations of money laundering and the misappropriation of funds.

Earlier this week, Progressive Credit Union received the green light to extend its common bond to allow it to do business in Rush and Lusk.

“We would be interested in purchasing the Rush [Credit Union] building,” Progressive’s chief executive Sean Staunton told The Irish Times, adding that it would also be interested in purchasing RCU’s loan book.

“Yes, very much so. We would be willing to pay a fair price. We’re not a vulture fund. We are a not-for-profit [entity] and we’re not looking at making an excessive profits [from the loans].”

Mr Staunton said Progressive was “open minded” about purchasing the Lusk premises, which would depend on demand.

‘Pop-up’ office

In the meantime, Progressive has established a “pop-up” office at the community centre in Rush to facilitate membership applications. It has also extended the opening hours at its neighbouring Skerries branch.

Mr Staunton said about 200 members of RCU have already joined Progressive, which comprises six credit unions in north Dublin.

Some 1,500 loans are outstanding at RCU, valued at between €9 million and €10 million.

The Rush branch has remained open to facilitate loan repayments.

Depositors of RCU began receiving compensation payments on Friday from the Central Bank deposit guarantee scheme.

About 9,700 members received €22.3 million between them, representing 98 per cent of deposits at the credit union.