Black Country credit union crashes into administration

Administrators have been appointed at Castle & Crystal Credit Union, after being declared default by the Financial Services Compensation Scheme (FSCS).

James Sleight and Peter Hart of the advisory team at PKF Littlejohn, have been appointed as joint administrators of the Dudley-based union, whose membership covers 7,173 members who live or work across parts of the West Midlands.

The FSCS said it expects the total compensation for members to be around £2.6m.

James Sleight, the joint administrator, said: “Castle & Crystal Credit Union members don’t need to worry as all of their money is safe – all of their deposits will be returned to them by the Financial Services Compensation Scheme (FSCS).

“If you have savings at the Credit Union, you don’t need to do anything to get your money back.  The majority of customers with a deposit with Castle & Crystal Credit Union should be receiving a cheque in the post from the FSCS in the next day, if not received already. In addition, a small number of customers will instead receive a letter to get cash over the counter at the Post Office. To get your payment, take this letter to any Post Office counter with personal identification, as outlined in the letter.

“In either case, the FSCS will contact you by post in an unmarked envelope. We too, have written to all members advising them of the process and how to access help and assistance with any queries. We’ll also be in touch with anyone who has a loan from the Credit Union to explain what happens next.”