DUDLEY savers have been assured their money is safe after the collapse of the borough’s Castle and Crystal Credit Union.

The Financial Services Compensation Scheme (FSCS) has stepped in to protect the members of credit union, based in New Street, Dudley, which has gone into administration.

James Sleight and Peter Hart of PKF Littlejohn Advisory Limited were appointed as Joint Administrators today (Tuesday May 21), a notice on the credit union’s website says.

It says savers are entitled to have their deposits returned and will receive their funds - up to the limit of £85,000 per person.

The FSCS will compensate most of the 7,173 members within seven days, with the compensation for the credit union expected to total around £2.6million.

James Sleight, of PKF Littlejohn Advisory, said: “All of CCCU’s savers will have their balance returned by the FSCS. They don’t need to do anything to get their money back; savers should look out for a letter in the post from the FSCS in the next few days.” The majority of customers will receive a cheque, while a small portion will receive a letter allowing them to get cash at any Post Office branch.

Councillor James Clinton, cabinet member for public health at Dudley Council, said: “We’re sorry to see Castle and Crystal Credit Union, a not-for-profit financial co-operative, has gone into administration.

“The administrators have written to members, assuring savers their money is safe. The Financial Services Compensation Scheme will be making payment of balances within seven days by cheque and those with loans will be given details of how to continue with payments.”

Matthew Phillips, head of readiness at FSCS, added: “We want to reassure customers of Castle & Crystal Credit Union Limited that their money is safe. FSCS will help customers get back on track as quickly as possible by protecting each member’s savings up to £85,000.

“FSCS’s website has further details and customers can contact us or the Joint Administrators with any questions.”

Anyone with queries or who has who has not received a compensation cheque within seven days should call the administration team on 01384 815771, 01384 660120, or 0113 244 5141 or email cccu@pkf-l.com or write to the Joint Administrators James Sleight & Peter Hart, PKF Littlejohn Advisory Limited, Third Floor, One Park Row, Leeds, LS1 5HN.