Navigating the CREA Cooperative Collapse - A Guide for Expats

The recent forced liquidation of the CREA Cooperative by the Superintendency of Popular and Solidarity Economy (SEPS) has left many, especially in the expat community, with urgent questions and significant concerns. As of Friday, August 29, 2025, the process of refunding depositors has begun. This guide combines the official procedures with deeper insights to help you navigate this complex situation.

For the roughly 70,000 members with deposits totaling $32,000 or less, the process is relatively straightforward. The Deposit Insurance Corporation (COSEDE) is insuring 100% of these funds.

How to Collect Your Insured Deposits:

• Where to Go:

  • In Azuay Province: Payments are being handled by Jardín Azuayo. You can find their locations here.

  • Rest of the Country: Payments are made through BanEcuador.

• When to Go (Payment Schedule by Cédula):

  • The process is organized by the last digit of your cédula. It began on August 29th with the digit 1 and will continue daily until September 11th with the digit 0.

  • Starting September 12, 2025, anyone can go at any time, regardless of their cédula number.

• What to Bring:

  • Your valid, current cédula.

  • A legible copy of your cédula.

• Important Notes:

  • The process is free. You do not need intermediaries or lawyers for this part.

  • Payments are immediate and can be received as a bank transfer, cash, certified check, or by opening a new account at the paying institution.

  • You can verify if you are a beneficiary on the COSEDE website: www.cosede.gob.ec

For those with funds exceeding the $32,000 insurance limit, the path is more complicated and requires proactive steps.

To claim funds above $32,000, you must fill out a "Formulario de Solicitud de Acreencias" (Creditors' Claim Form).

• Download the form here: Official CREA Creditors' Form

• Required Documents:

  • The signed claim form.

  • Copy of your cédula and voting certificate (papeleta de votación).

  • Proof of your funds, such as a copy of your savings book (libreta), account statement, or policy (póliza).

• How to Submit:

  • In-person: At enabled CREA branches.

  • Digital: Via email to liquidacion@crea.fin.ec.

While the official notice states that this process is personal and does not require a lawyer, this may be misleading. The reality of navigating Ecuadorian bureaucracy, especially when significant sums of money are involved, can be a labyrinth of unspoken rules, changing requirements, and discretionary decisions by officials.

As Javier from the Cuenca Expat Hub notes, "There are definitely ways to do things wrong... there are quite a few ways to get it wrong and actually get to lose money because things will get deposited at some point or phase, somewhere else, and once that’s done... you’re not gonna access those funds, even if you're still owed money."

Consider the following:

• The System is Fluid: Requirements can change without warning. What is true today may not be true tomorrow when you are standing in line.

• Time is Not on Your Side: There are strict, often poorly communicated, deadlines. Once a phase of the liquidation is complete, the remaining funds may be reallocated, and your chance to claim them could be lost forever.

• You Need a Representative: If you travel, have health issues, or are not fluent in legal and financial Spanish, having a trusted legal representative with a Power of Attorney is crucial. They can act on your behalf to meet sudden deadlines and navigate the system.

Finding a lawyer who plans ahead and clearly communicates the strategy is difficult but vital for success in these situations. And, if there is something we here in the Cuenca Expat HUB feel happy about is that we have been able to start building connections with competent specialists in these and other areas in Ecuador.

One of the most critical, and often overlooked, risks is inheritance. The Ecuadorian legal system for inheritance is fundamentally different from that in the United States, Canada, or the UK.

• Foreign Wills Don't Automatically Apply: A will made in your home country is often not sufficient to dictate how your assets in Ecuador are distributed.

• Default Distribution: Ecuador has a legally mandated hierarchy for inheritance (spouse, then children, then parents, etc.). It is very difficult, and sometimes impossible, to alter this.

• The State Wins: If the process is not handled correctly by your heirs within the legal timeframes, your assets can—and often do—end up in the hands of the Ecuadorian state.

This means that upon your death, your family could face a legal nightmare, and the assets you intended for them could be lost to bureaucracy.

So, not only do you want to make sure you take proactive action on getting your assets back timely. You also should look into preparing everything so that in worst case scenario, you pass away and leave those assets to your children, they actually get a significant portion of the inheritance and the state gets the least as possible.

I've been able to have quite a few talks about this with Sabrina Candela, a civil attorney very well-studied in wills in the Ecuadorian law. Be sure to contact her if you'd like to get some more information on how to protect your assets from being lost to the Ecuadorian state. Make your family's life much easier when you part. Having a properly and legally recognized will in Ecuador is a key asset.

One strategy to mitigate these risks is to hold assets in a way that bypasses the complexities of the Ecuadorian legal system. International life insurance policies with a savings or investment component offer a powerful solution.

* Bypass Inheritance Laws: Because the policy is an international contract, you designate the beneficiaries and the distribution percentages. This is not subject to Ecuadorian inheritance laws.

* Financial Security for Your Family: It provides your loved ones with immediate financial support, covering the significant costs associated with a death (legal, logistical, repatriation) without them having to fight for access to frozen bank accounts.

* A Stable Asset: These policies appreciate over time, are often tax-exempt, and can be borrowed against, acting as a stable financial asset for you during your lifetime.

Please contact me at info@cuencaexpathub.com and let me know you're looking to know a potential matching policy for your life insurance needs with savings option. You will be happy you took a step towards your most peaceful future, a future free of post-death necessities.

I work with AC Services and Crediseguros, and It'll be a pleasure to help you find out what's the best life insurance policy for you, so that you can enjoy a some benefits while you live and your family all the benefits when you part.

We have all kinds of life and health policies available for people from anywhere in the world that reside here in Cuenca. We might also have a few additional options of policies depending on what you're looking for.

This article is for informational purposes only and does not constitute legal or financial advice. For personalized guidance on legal matters or investment strategies, you can contact Javier at the Cuenca Expat Hub via WhatsApp at 097 897 0312 or by email at info@cuencaexpathub.com.

Aids and references:

- Corporación del Seguro de Depósitos (COSEDE): The official government entity managing the deposit insurance and refunds.

a. Beneficiary Verification Link

- Cooperativa CREA: The cooperative's own official communication channels.

a. Official Creditors' Claim Form

- Jardín Azuayo: The authorized paying institution for Azuay Province.

a. Locations Page

#### News & Social Media

- Primicias.ec: A digital news outlet reporting on the payment schedule.

a. Article Link

- Radio Mega 103.3 FM: A radio station reporting on the details of the refund process.

- Note: This is a social media/broadcast source, so there is no direct article link provided in the original text.

- VENTAS & ANUNCIOS (Cañar, Azuay - EEUU): A social media page posting updates about the payments.

- Note: This is a social media source, so there is no direct article link provided in the original text.

- We also thank Sabrina Candela, practicing attorney in Cuenca, Ecuador, for her input and insights on many aspects of the legalities around this topic.