Woman held as officers probe credit union fraud
More than 5,700 savers were affected when the North Yorkshire Credit Union was put into liquidation last week after accruing debts of more than £400,000 since opening in 2009.
The police investigation is separate to one being carried out by the Financial Services Authority.
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Hide AdA spokeswoman for North Yorkshire Police said yesterday that a 57-year-old York woman has been arrested in connection with an investigation into alleged fraud at the credit union relating to two loans and cheques to the value of £3,130 and has since been bailed.
The union got a £200,000 start-up loan from North Yorkshire County Council and a further £100,000 from York Council.
Both loans have now been written off.
A replacement organisation, overseen by the South Yorkshire Credit Union, is due to open with a further £100,000 grant from the two authorities along with Scarborough Borough Council.