Dozens yet to come forward as FSC urges action on credit union payouts

The Financial Services Commission (FSC) is preparing to pay out thousands of dollars in claims to dozens of former members of a cooperative once linked to the Barbados Labour Party (BLP), which was wound up by the regulator two years ago.

The FSC disclosed on Thursday that a significant number of former members of the Progressive Cooperative Credit Union Limited, which was located at the BLP’s Roebuck Street headquarters, have so far submitted claims following the commission’s cancellation of its registration on December 12, 2024, and its subsequent liquidation due to its financial position.

One former member, who preferred to remain anonymous, told Barbados TODAY that some policyholders had grown sceptical about the company’s operations and had stopped investing in it.

“The commission notes that, to date, 112 of the total 261 members affected have contacted us to initiate the payout process,” the regulator announced after Barbados TODAY reached out to it for an update on the payout plan.

“Further, as of May 5, 2026, payment requests submitted amount to $8 775.66.  This figure reflects the value of claims which are currently being processed and are subject to settlement by the Barbados Central Bank, in accordance with regulatory procedures,” the FSC revealed.

“This response by members represents a meaningful level of engagement; however, the commission notes that not all of those affected have come forward. Therefore, interested parties who did not meet the March 31, 2026 deadline, are encouraged to contact us as soon as possible. While the deadline facilitated efficient administration of the winding-up process, we will continue to facilitate the settlement of outstanding requests.”

The commission has told former policyholders that timely engagement with it remains critical to ensuring members can access any funds to which they are eligible.

The FSC then addressed the issue of members who have since died.

“Regarding deceased members, the commission has received limited, but ongoing engagement from their representatives. Executors and personal representatives are reminded that they must provide the appropriate legal documentation (such as probate or letters of administration) to support claims.”

The regulator said that while it remains willing to assist these representatives in facilitating the “proper” allocation of funds to entitled estates, to date, multiple representatives of deceased members have indicated a reluctance to proceed with the payout process.

The FSC said these representatives have reasoned that the cost of obtaining probate or letters of administration exceeds the value of the entitlement.

“Overall, the commission remains committed to this process and will continue our outreach efforts through notices on our website and social media platforms to ensure that all eligible persons are afforded the opportunity to come forward and claim their entitlements,” the regulator said.

Among the list of credit union members named by the commission are a number of prominent persons.

Without providing details, the commission said it had cancelled the credit union’s registration pursuant to section 25 of the Financial Services Commission Act and subsequently placed it into liquidation in accordance with section 152(d) of the Co-operative Societies Act.

As part of the liquidation process, the commission said it has assumed responsibility for distributing the available assets of the credit union to its members.

(EJ)