The sudden closure of a Bradford credit union has left hundreds of people angry and bewildered - and many struggling for money.

An angry crowd banged on the door of the St Columba's Credit Union office in Tong Street after it ceased trading overnight.

It left up to 5,000 people unable to draw wages, pensions, benefits and savings.

One woman, whose £12,000 life savings are with the union, said worried crowds gathered outside the locked up office on Thursday.

She said: "There was a big group of up to 50 people. They were braying on the door and some were crying.

"Many have all their savings with the union - people are going mad."

A notice had been put up stating the union had closed down and telling people to write to the financial regulator, the Financial Services Authority.

A 28-year-old man told how he went to the office on Thursday to withdraw three years' savings for a holiday in Spain with his wife and children. He said: "It was all shut up. It was a big shock. Elderly people were outside wanting their pensions. They were very upset.

"It's going to cause a lot of people worry and uncertainty."

A nearby shopkeeper said: "There is a lot of anger but the situation has calmed down outside the office. People realise there is nothing they can do."

In a letter to its members, the union states that the closure follows a violent robbery last month.

A pregnant union member was attacked after leaving the office. Her bag, containing £1,000, was stolen in the attack.

The letter states: "It is with deep regret that we have to inform you of the closure of the credit union as from today."

It says the union has suffered several setbacks - namely robberies in its office and on the woman member.

Also, ill health had reduced its voluntary committee to three. The union could no longer be administered and had become "basically insolvent".

The union assures members their savings are covered by the Financial Services Compensation Scheme.

It states: "The FSA have kindly offered to take over the administration of the credit union and will become custodians of members' savings."

But a spokesman for the FSA denied this. He told the T&A: "We have had calls from members of the credit union and have explained the position to them.

"We have not closed the credit union ourselves nor have we taken over the administration.

"We accept that it has closed and we are in discussions with it about the next steps."

After last month's robbery councillors organised a petition calling for CCTV cameras to be put up in the area.

Councillor John Ruding said it was very important shopkeepers and their customers could go about their business safely.

He said the credit union had been an extremely valuable resource for families, particularly those in the Bierley area.

"I am sorry to see it close and I regret that a particularly nasty robbery may have had an influence on the decision because this kind of crime is not common in the area," he said.

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