A credit union in Birmingham which celebrated its 20th anniversary this year has gone into administration and is facing closure.
Birmingham Inner Circle Community Credit Union has been placed under the control of administrators from Quantuma and will shut down in October.
The union, which is based in Ladywood, was founded in 2002 and acts as a financial cooperative, offering its members saving and borrowing services. In 2020, it recorded a turnover of £105,000.
A statement from administrators at Quantuma said it had encountered problems due to solvency issues and regulatory breaches under the PRA/FCA prudential and conduct rules.
All members with funds below £85,000 will be protected and repaid in full by the Financial Services Compensation Scheme but those with loans will be required to continue repaying them during this administration in line with the loan agreement.
Dina Devalia, joint administrator and managing director of Quantuma, said: "Members of the Birmingham Inner Circle Community Credit Union don't need to worry.
"Their money is safe and the Financial Services Compensation Scheme will return 100 per cent of members' deposits. We are working closely with the scheme to ensure that all members receive their money back as soon as possible."
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