A FLINTSHIRE-based Credit Union has announced it has been placed into administration.

However, in a statement published on their website, All Flintshire Credit Union (AFCU) has reassured customers that their savings will be protected.

Credit unions are not-for-profit, member-owned, community savings and loans providers and are an ethical alternative to high street banks or doorstep lenders.

James Sleight and Peter Hart of PKF GM were appointed as Joint Administrators of the Holywell-based AFCU firm on January 25.

The Financial Services Compensation Scheme (“FSCS”) has also declared the credit union in default, which means that all savers monies are protected and will receive their funds (up to the limit of £85,000 per individual).

James Sleight, of PKF GM, said: “All of AFCU’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.”

AFCU has now ceased trading.

The statement on the website adds: "You do not need to do anything to make a claim for your AFCU savings balance with the FSCS as they will send you payment in respect of your account balances as at 24 January 2022 very soon.

"Should any monies be paid into AFCU’s bank account on or after 25 January 2022 until the account is closed where you are the intended recipient you will need to complete a return of funds request form which will be issued to you by post shortly by the Joint Administrators.

"Your benefits, salary or other regular deposits into your AFCU’s account

"You need to contact DWP or any other government offices that handle your benefits and give them new account details for another account in your name. If you do not have an account with any other bank or credit union, you will need to set one up immediately as AFCU’s bank account will be closed.

"You need to continue to make your contractual repayments on your loan(s) until fully paid off.

"You should cancel any direct debits or standing orders you currently have in place in relation to your savings and contact the office (numbers published below) to obtain the new Administration bank details to set up a standing order to resume your contractual loan(s) repayments."

Responding to the news, Delyn MP Hannah Blythyn said: "Delyn MS Hannah Blythyn said: “I know that many constituents will be concerned by the announcement that the All Flintshire Credit Union has been placed in administration.

“Since becoming aware of the challenges they have been facing I have been in touch with AFCU and Jane Hutt as Minister responsible, to offer as much as support as possible.

“While it has now entered administration the Minister has given an assurance that those impacted by the closure will be protected by the Financial Services Compensation Scheme, who will act very quickly to compensate members.

“I am aware that the Minister has also agreed to provide financial support to Cambrian Credit Union to support them to physically move into the area following the closure of AFCU.”

Delyn MP Rob Roberts added: "There are 1,919 members of this credit union in Delyn and I know that this will be an extremely worrying time for them.

"I want to assure these members that the Financial Services Compensation Scheme (FSCS) has stepped in to protect the members. The FSCS are arranging for members to receive their account balances back as compensation within the

Meanwhile, Cambrian Credit Union - which already has a number of members in the county - says it is working with the Welsh Government to save jobs and open offices in Flintshire.

Cambrian says it will be in a position to make a firm announcement soon, but hope to open in Holywell as early as next month (Feb).

General Manager Ann Francis said: "We are disappointed to learn that All Flintshire Credit Union has gone into administration and our thoughts are with its members and staff at this time.

"All Flintshire Credit Union is an entirely separate organisation to Cambrian Savings and Loans and we have no connection with its business. The closure of All Flintshire Credit Union will have no impact on the running of Cambrian Savings and Loans or our members deposits.

"As with all banks, building societies and credit unions, individual members’ savings are protected to the sum of £85,000 as part of the Government-backed Financial Services Compensation Scheme (FSCS). The FSCS will use All Flintshire Credit Union’s records to automatically send payments out to its members.

"In light of the need for affordable credit and ethical savings in Flintshire, Cambrian is working at pace to set up premises in the county and safeguard jobs. A further announcement will be made in due course. In the meantime, as the largest credit union in Wales, we are able to serve the people in Flintshire through our existing office network and online services."