Derry credit union writes off almost £1m bad debt

Published

Almost £1m pounds of bad debt has been written off by Derry Credit Union this year.

The organisation is to take court action against members who took out loans worth £850,000 which have not been repaid.

Members who accepted bankruptcy or individual voluntary arrangements will lose their membership until loan balances are cleared.

Seamus McAnee from Derry Credit Union said 2010 was "particularly lean".

"We have a policy where if there's no payment made off the capital, after 12 months we have to write that amount off, but that doesn't mean it's lost.

"We still pursue those that owe us money, and we try to keep that member on board.

"Eventually a lot of them come back into the fold and become good members."

The branch wrote off £600,000 in 2009.

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