281 Cuenca Families Still Can't Get Their Savings Back From a Collapsed Cooperative — 7 Months Later

When "99% Resolved" Still Means You Lost Everything

Here's a number that sounds reassuring until you're on the wrong side of it: Ecuador's financial regulators say 99% of CREA cooperative depositors have been repaid.

But if you're one of the 281 members who haven't seen a cent of their savings in seven months, that 99% means nothing.

The defunct CREA savings and credit cooperative in Cuenca collapsed around July 2025, and the aftermath is still playing out in protest marches and legislative meetings.

What Happened to CREA

CREA was a cooperativa de ahorro y crédito — a savings and credit cooperative — operating in Cuenca. These institutions are common throughout Ecuador and serve as alternatives to traditional banks, especially for lower- and middle-income savers.

When CREA went under approximately seven months ago, it left behind roughly $31 million in unpaid deposits owed to the remaining members who haven't been made whole.

Who's Affected

The 281 members still waiting aren't wealthy investors who can absorb the loss. They include:

• Migrant workers who sent remittance savings back to Ecuador for safekeeping
• Retirees who deposited their retirement capital
• Working families who trusted the cooperative with their life savings

For these people, the trapped deposits represent years — sometimes decades — of accumulated savings.

What the Government Says

The Deposit Insurance Corporation (COSEDE) and the Financial Regulatory Board maintain that 99% of depositors have received their funds. They point to the insurance mechanism that covers small deposits up to a certain threshold.

But here's the catch: if your deposit exceeded the insurance ceiling, you're in the 1% that's still waiting. And for 281 families, that waiting has no end in sight.

What Members Are Doing

The affected members haven't been quiet:

• Organized collectively to demand repayment
• Met with Azuay provincial lawmakers to push for legislative intervention
• Publicly advocated through protests and media appearances

Despite these efforts, no concrete payment timeline or resolution has been established.

Why Expats Should Care

Many expats in Cuenca use cooperatives for banking. They often offer:

• Higher interest rates on savings than major banks
• More personal service
• Easier account opening for foreigners
• Lower fees

But they also carry higher risk. Cooperatives are regulated differently than banks, and deposit insurance limits may not cover your full balance.

Practical Takeaways

• Know your deposit insurance limit. COSEDE insures deposits up to a certain amount (currently around $32,000). Anything above that threshold is at risk if the institution fails.
• Don't put all your eggs in one cooperative. Spread larger savings across multiple institutions.
• Stick with well-established cooperatives like JEP, Jardín Azuayo, or the larger national banks (Banco del Pacífico, Banco Pichincha) for significant deposits.
• Ask about the cooperative's financial health. Superintendencia de Economía Popular y Solidaria (SEPS) publishes financial data on cooperatives.
• Keep records. If the worst happens, having clear documentation of your deposits is essential for recovery claims.

The CREA collapse is a reminder that in Ecuador's financial system, convenience and high interest rates come with trade-offs. For 281 families in Cuenca, that lesson came at an unbearable cost.

---

Source: El Mercurio