Presbyterian Mutual

{{Short description|Failed mutual society based in Belfast, Northern Ireland}}

{{Use dmy dates|date=April 2022}}

The Presbyterian Mutual Society, also known as Presbyterian Mutual, is a Belfast-based mutual society with around 9.500 investors, most of whom are members of the Presbyterian Church in Ireland.[http://www.belfasttelegraph.co.uk/news/local-national/presbyterians-to-lose-millions-as-mutual-collapses-14140272.html Presbyterians to lose millions as Mutual collapses], The Belfast Telegraph, 14 January 2009

The society has been put into administration after a run on the society in October 2008 when £21 million of its £25 million reserves were withdrawn.{{cite web|url=http://www.rte.ie/news/2009/0115/presbyterian.html|title=Presbyterian Mutual Society collapses |archive-url=https://web.archive.org/web/20090119223155/http://www.rte.ie/news/2009/0115/presbyterian.html |archive-date=2009-01-19 |date=15 January 2009|publisher=RTÉ}} Presbyterian Mutual had lent heavily to the commercial property developers and the buy to let sector.[http://www.thenews.coop/features/Wider%20Co-op%20Movement/1540 Some good can come out of Presbyterian Mutual collapse] {{webarchive|url=https://web.archive.org/web/20110718162954/http://www.thenews.coop/features/Wider%20Co-op%20Movement/1540 |date=2011-07-18 }}, co-operative News, March 19, 2009 The loss of funds was attributed to the fact that commercial banks had their deposits guaranteed, in contrast to the Mutual's unguaranteed status.[http://www.midulstermail.co.uk/news/Investors-request-meeting-over-Presbyterian.4895564.jp Investors request meeting over Presbyterian Mutual Society funds], Mid Ulster Mail, 22 January 2009 The then Minister for Employment and Learning, Sir Reg (now Lord) Empey, amongst others, called for the Treasury to compensate investors. The Treasury subsequently set up a Working Group to consider what action could be taken.{{cite web|url=http://www.hm-treasury.gov.uk/presbyterian_mutual_society_working_group.htm |title=Presbyterian Mutual Society working group - HM Treasury |access-date=2010-01-22 |url-status=dead |archive-url=https://web.archive.org/web/20091015191916/http://www.hm-treasury.gov.uk/presbyterian_mutual_society_working_group.htm |archive-date=2009-10-15 }}, HM Treasury

Gordon Brown talked with Northern Ireland's political leaders on its future on February 12, 2010.[http://www.rte.ie/news/2010/0212/presbyterian.html "Talks over Presbyterian Mutual Society"]. RTÉ. Friday, 12 February 2010.

In October 2010 George Osborne announced a £200 million payment to compensate savers as part of the Comprehensive Spending Review.{{cite web |date=20 October 2010 |title=£200m pledged for collapsed N Irish mutual |url=https://www.ft.com/content/bb7e9f28-dc45-11df-a9a4-00144feabdc0 |access-date=22 August 2023 |website=Financial Times}} The final bill came to £232 million, and the first cheques for repayment were sent on 2 August 2011.{{cite news|url=https://www.bbc.com/news/uk-northern-ireland-14368955|title=PMS investors get cheques in post|work=BBC News|date=2 August 2011}} Around 10,000 people were affected by the collapse.

As of 2021, the Society's administrators (supervisors) declared that they would be unable to secure full repayment of the 175 million pounds due, and so investors with outstanding monies due would not receive them back. All savers who invested less than £20,000 have been more or less fully compensated but those with higher amounts were left with deficits of 15 to 23%.{{Cite news |date=2021-04-04 |title=Presbyterian Mutual Society: Savers face new financial blow |language=en-GB |work=BBC News |url=https://www.bbc.com/news/uk-northern-ireland-56361369 |access-date=2022-07-09}}