The Financial Services Compensation Scheme has stepped in to protect the members of Castle & Crystal Credit Union which has stopped trading and is now in default.

The FSCS expects the total compensation for Castle & Crystal Credit Union Limited to be around £2.6m.

The Scheme will compensate most of the 7,173 members within seven days with the majority of customers receiving a cheque, while a small portion of members will receive a letter to allow them to get cash at any Post Office branch.

Anyone who believes they still have money in an account with the Credit Union but has not received a compensation cheque from FSCS within seven days should contact the Joint Administrators James Sleight & Peter Hart, PKF Littlejohn Advisory Limited, Third Floor, One Park Row, Leeds, LS1 5HN.

Matthew Phillips, Head of Readiness at FSCS said: “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.”

A dedicated page on the FSCS website includes questions and answers, which may be useful for members of Castle & Crystal Credit Union Limited.

Customers can see how they’re protected by visiting the FSCS website at fscs.org.uk.