Richmond credit union placed into conservatorship
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The National Credit Union Administration this week placed Richmond City Employees Federal Credit Union into conservatorship. The agency says the move is in response to “unsafe and unsound practices at the credit union,” though specific details were not released.
A conservatorship means the NCUA has taken control of the credit union, according to the agency’s website.
The NCUA says member deposits at the credit union remain protected by the National Credit Union Share Insurance Fund, which insures individual accounts up to $250,000 and a member’s interest in all joint accounts combined up to $250,000.
The fund also separately protects IRA and KEOGH retirement accounts up to $250,000.
“While continuing normal member services, the NCUA will work to resolve issues affecting the credit union’s operations,” the agency said Monday in a news release.
The NCUA says conservatorships have three possible outcomes: The credit union can resolve its operational problems and be returned to member ownership; the credit union can merge with another credit union; or, the NCUA can liquidate the credit union.
Representatives of Richmond City Employees Federal Credit Union did not respond to multiple requests for comment from Inside INdiana Business.
Members of the credit union can continue to conduct normal financial transactions, despot and access funds, make loan payments and use shares through the credit union’s main office in Richmond, the agency said.
Richmond City Employees Federal Credit Union has 836 members and assets of just over $8 million according to its most recent Call Report. The NCUA said there is no timetable for completing the conservatorship.