Collapsed credit union calls in PKF Littlejohn

Collapsed credit union calls in PKF Littlejohn

Jun 4, 2024

PKF Littlejohn Advisory has been appointed as administrators to wind up the affairs of troubled Castle and Crystal Credit Union 

The Dudley based financial co-operative has ceased trading and James Sleight and Peter Hart of the advisory team at PKF Littlejohn have been appointed as joint administrators of the credit union, whose membership covered residents and employees who lived or worked across the west Midlands.

Customers have some protection as regulatory bodies have declared the Castle and Crystal Credit Union (CCCU) in default, which means that savers will be paid back their deposits up to £85,000 as they are covered by the Financial Services Compensation Scheme (FSCS). Payments should be made within seven days of the administration date of 21 May.

The majority of customers will receive a cheque and ‘where it has been agreed suitable, a small number of customers will instead receive a letter to get cash over the counter at the Post Office,’ according to a statement on the CCCU website. It also urged anyone affected to set up an alternative bank account to ensure salaries and benefits can be paid as CCCU accounts have been frozen.

The CCCU offices are closed but there is a confusing message on their website stating that ‘due to unforeseen circumstances and an outbreak of Covid, Credit Union will be closed until Monday 3 June 2024, when below opening hours will hopefully resume’.

James Sleight, joint administrator at PKF Littlejohn, 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.’