A credit union with more than 2600 members has gone into administration.

Administrators were called in to the North East Scotland Credit Union (Nescu) on Tuesday as it was declared to be in default.

They confirmed that the Aberdeen-based union had ceased trading and was not expected to re-open.

Anyone who has savings with Nescu is guaranteed to have their funds returned.

Dina Devalia, of administrators Geoffrey Martin and Co, said: "All of North East Scotland Credit Union's savers will have their balances returned by the Financial Services Compensation Scheme (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."

Local MSPs have expressed their concerns over the union's closure.

Kirsty Blackman, SNP MP for Aberdeen North, said: "This news will come as a great shock to the 2600 members of Nescu, but it is important that they understand their money will be returned to them, as it is covered by the FSCS.

"I have been informed that extra assistance will be provided to those customers of Nescu who also receive benefits, but I would urge anyone in Aberdeen to contact me if they are affected and have concerns about that."

Kevin Stewart SNP MSP for Aberdeen Central, said it was "disappointing" to see the end of the not-for-profit union.

He added: "I would urge people to be cautious if withdrawing their deposits of up to £1000 in cash from a post office, as they may be advised to, and ensure they have a plan to get their money safely deposited to another credit union or bank straight away.

"More information needs to become available from the administrators and Nescu including an explanation of how they came to be in this position so lessons can be learned."