ABCUL Members

Permanent Record of Written-Off Bad Debts Ombudsman Complaint

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  • January 9, 2025 at 7:16 pm #7229

    Sean
    Participant

    Hi there,

    As part of a complaint the ombudsman has asked me to provide:

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  • Please confirm where in the regulations/legislation it states that credit unions are required to keep permanent records of bad debts written off. Please provide the relevant excerpt from the regulations/legislation that states this.

    • We have this in our policy and I am fairly certain that we took it from an ABCUL information guide that listed various retention periods.

    However, I cannot find explicitly where it says this in the regulation. Chat GPT has a bit or a mirage but the closest it has got to is:

    Regulatory Requirement:

    Under the Co-operative and Community Benefit Societies Act 2014 and specific rules governing credit unions, the following apply:

    1. Permanent Record of Written-Off Bad Debts:
      Credit unions are required to maintain a permanent register or record of all bad debts that have been written off. This is to ensure transparency, accountability, and proper auditing of financial practices.

    2. Purpose:

      • To demonstrate compliance with regulatory and accounting standards.
      • To support audits by regulators and external auditors.
      • To provide evidence in case of disputes or reviews.
      • To ensure accurate financial reporting.

    3. Duration of Record-Keeping:
      While most financial records are subject to a six-year retention rule under HMRC and general accounting standards, the Register of Bad Debts is specifically identified as a record that must be kept permanently in credit union operations to ensure a complete financial history.

    No specific section of the Act……..

    Has anyone come up against this challenge before and can point me in the right direction? This is an existing member who had a bad debt a number of years ago. Thanks to our wonderful core system the member was sent a statement which listed this product even with the current nil balance.

    Thanks

    Sean Lynch - CEO Citysave Credit Union Ltd Mobile: 07787431350 E-mail: Sean.Lynch@citysave.org.uk

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    • January 11, 2025 at 3:40 pm #7234

      Martin
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      Martin Groombridge, CEO & Dogsbody,  London Capital Credit Union, ceo@credit-union.coop      WWW.Credit-Union.coop

    • January 13, 2025 at 1:17 pm #7249

      John
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      John - Stockport Credit Union

    • February 21, 2025 at 1:45 pm #7676

      Sean
      Member

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      Sean Lynch - CEO Citysave Credit Union Ltd Mobile: 07787431350 E-mail: Sean.Lynch@citysave.org.uk

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