Rush Credit Union Compensation Payments Issued

The Central Bank has been monitoring Rush Credit Union over a number of years and during that period has investigated aspects of its business. The Central Bank is of the view that there are a number of reasons for the failure of Rush Credit Union which have manifested over an extended period of time, including issues relating to governance, internal controls, lending practices and valuation of its premises. Despite assurances given by Rush Credit Union to the Central Bank, and the credit union having been provided with an opportunity to address the issues concerned, in the opinion of the Central Bank, they have not been adequately addressed. In applying for winding up, the Central Bank has also considered Rush Credit Union’s recent financial performance and its constrained capacity to ameliorate its distressed financial position. In particular Rush Credit Union is currently balance sheet insolvent (based on 31 August 2016 management accounts submitted to the Central Bank by the credit union).

All members’ eligible deposits will be compensated by the Deposit Guarantee Scheme (DGS).

Joint Provisional Liquidators have been appointed to oversee the closure and wind down of Rush Credit Union pending a final decision of the court.  All issues relating to the wind down of services will be managed by the Joint Provisional Liquidators.  

Following the appointment of the Joint Provisional Liquidators, the Deposit Guarantee Scheme (DGS) has been invoked.  Members of Rush Credit Union will receive compensation in respect of their eligible deposits up to €100,000 per depositor. The DGS will make compensation payments as early as possible within the statutory deadline of 20 working days to duly verified depositors. 

The Central Bank is conscious that there is a demand for the services of a credit union in the local area and will examine what arrangements can be put in place to provide specific credit union services in the community in the future.  The Central Bank is keen that credit union services are available to the people of Rush and Lusk.

In some cases members may be able to avail of services in another credit union in the area as the common bond may extend into their locality or through their place of work.

You should continue to make repayments in accordance with the terms and conditions of any loan. The liquidation does not imply any change in members’ repayment obligations e.g. a faster repayment schedule cannot be imposed. Payments will continue to the term as set out in the existing terms and conditions.  The Joint Provisional Liquidators will contact all members with outstanding loans to make arrangements for repayment.  

If you have any queries you can contact the Joint Provisional Liquidators on 01 676 3566.

As the Credit Union has been placed in liquidation, loan applications will not be progressed any further.

The Joint Provisional Liquidators of Rush Credit Union, Jim Luby and Tom Rogers, are court appointed officials and are fully independent of Rush Credit Union.  The Joint Provisional Liquidators main objectives are (i) to work with the DGS to ensure that compensation is paid to duly verified depositors and (ii) to ensure that the best results are achieved for Rush Credit Union’s creditors by making arrangements for the continuing payment of loans etc.   All queries relating to loan repayments should be directed to the Joint Provisional Liquidators.  

Jim Luby and Tom Rogers of McStay Luby have been appointed as Joint Provisional Liquidators of Rush Credit Union.  The contact details for the Joint Provisional Liquidators are provided below:  

By Post - McStay Luby, Dargan House, 21-23 Fenian Street, Dublin 2
Website – www.mcstayluby.ie
Email – rescue@mcstayluby.ie
Phone – 01 676 3566

No. The DGS was activated following the liquidation of IBRC in June 2013 and Berehaven Credit Union in July 2014.

There is no need for members to make a claim for DGS compensation.  The Joint Provisional Liquidators will provide details of duly verified eligible members and account balances to the DGS. The DGS will then make payments by cheque which will be sent to members at the address held by Rush Credit Union.

Cheques usually clear within 3-5 working days.  More information can be found on the Banking and Payments Federation of Ireland website.

Where Rush Credit Union was not advised that you had changed address, payments will be issued to the last address held for you by Rush Credit Union.  In order for a payment to be issued to your new address you will need to complete and return a DGS Change of Address form.   
Where Rush Credit Union was aware that you had changed address but did not hold updated address details, payment will be deferred pending receipt of a completed DGS Change of Address form.  

The DGS Change of Address form can be downloaded from depositguarantee.ie. Completed forms should be posted to the address provided on the form.

Completed forms along with supporting documents should be sent to the address provided on the form. Submissions can also be accepted via email to info@depositguarantee.ie. however if you choose to use this means of communication please note that the DGS cannot guarantee the security of data when it is transmitted to us via email. The Change of Address Form can be downloaded from depositguarantee.ie and the supporting documents that are required are listed on the form.

The DGS requires the original form along with original supporting documents in order to process a claim therefore forms can only be submitted by post to the DGS. The Deceased Member Claim Form can be downloaded from depositguarantee.ie and the supporting documents that are required are listed on the form.

The DGS Deceased Member Claim Form should be completed by the deceased member's Credit Union Savings Nominee/Personal Representative.  The DGS Deceased Member Claim Form can be downloaded from depositguarantee.ie

The DGS will automatically send a cheque in the name of the account holder for the balance of their account at the date of liquidation.  It will be necessary for the account holder to have an account at an alternative institution to lodge this cheque.

If a member does not agree with the amount that they are paid they should complete a DGS Depositor Claim Form and post it to the DGS at the address detailed on the form.

Compensation payments issued to depositors are based on the amount held in shares and/or on deposit less any arrears that were due on the appointment of the Joint Provisional Liquidators to Rush Credit Union Limited. If you believe that the compensation amount you have received is not reflective of your shares/deposit holding, less arrears please click here to download a Depositor Claim Form.

Budget accounts with a credit balance are covered by the DGS.  A budget account can have either a debit or credit balance depending on the outflow of funds to meet scheduled bills.  If you have a debit balance on your budget account you will be required to repay the amount owing.

Un-cashed cheques relating to deposit account balances held in Rush Credit Union may be eligible for compensation.  If you have a cheque of this type please contact the Joint Provisional Liquidators.

The maximum compensation payable is €100,000 per depositor per institution.

It is based on the balances on accounts in Rush Credit Union as at close of business on the date that the Joint Provisional Liquidators were appointed and includes any interest due up to that date. All balances held in the member’s name (including balances held in a joint account or as a beneficiary in a trustee account) are aggregated for the purpose of calculating the maximum compensation owed to the member by the DGS.

The DGS will receive information from the Joint Provisional Liquidators detailing deposits that are eligible for compensation together with a breakdown of individual accounts and balances. The amount of compensation you receive will be the total balance on all your accounts as at the date of the appointment of the Joint Provisional Liquidators less any arrears that were due in respect of loans that were provided to you by Rush Credit Union Limited. The maximum amount of compensation payable by the DGS is €100,000 per depositor.

As a general rule, liabilities such as loans are not set off against deposits when calculating DGS compensation.  However, the Joint Provisional Liquidators where entitled to do so may set off arrears where they have fallen due on or before the date of the liquidation.

The Joint Provisional Liquidators will contact all members to detail arrangements for repayment of loans.

If you have any queries about loans or treatment of arrears you can contact the Joint Provisional Liquidators on 01 676 3566.

The DGS will receive information from the Joint Provisional Liquidators, which will detail the individual deposit balances of all accounts held by members. If a member does not agree with the amount that they are paid they should complete a DGS Depositor Claim form and post it to the DGS at the address detailed on the form.  The DGS Depositor Claim form will be made available on depositguarantee.ie

In the case of a joint account, in the absence of special provisions that override the standard arrangement of splitting equally, a joint account shall be divided equally among the depositors.  The amount each account holder receives in respect of a joint account will be aggregated with any other balances held by that account holder. This means that each account holder in a joint account would be eligible for compensation up to the maximum limit of €100,000 per person.