Group of CREA depositors file suit against directors, claim SEPS ignored early warning signs at the coop

A group of investors in the CREA Savings and Credit Cooperative is suing the coop directors and demanding the immediate return of their deposits. They are also insisting that the Attorney General’s office open an investigation into the collapse of the coop and its Tuesday closure by the Superintendence of Popular and Solidarity Economy (SEPS).

CREA headquarters in Cuenca.

According to one person who is party to the suit and who asked not to be identified, most of those involved in the legal action have deposits at CREA greater than the $32,000 insured by the National Deposit Insurance Corporation.

Attorney María Bernarda Vásquez, who has an account at CREA, insists that prosecutors investigate the chain of events that lead to the closure by SEPS and why management did not acknowledge the “massive deficiencies” earlier this year.

She holds SEPS partly responsible for the collapse of the coop. “I believe they failed to act in time despite knowing about the deteriorating conditions,” she said. “They had been observing the financial situation for more than two years and, from my perspective, failed in their mission to protect the public.”

According to Vásquez, there were serious warning signs at the coop in late 2024 when CREA refused to return money of at least five large account holders. “We filed a complaint with the court about it and were told by SEPS to keep quiet in the interest of avoiding financial panic,” she said. “They assured us the problem would be resolved and that the depositors would receive their money.”

Vásquez is also concerned about the Deposit Insurance Corporation’s ability to cover all accounts up to the $32,000 limit. “We will be monitoring the insurance payouts closely to make sure people are repaid the portion of their deposits that is insured,” she said.

Vásquez said that a WhatsApp group has been established to connect all CREA members.