What Are Credit Unions And How Can They Beat Payday Lenders? (2)

Credit UnionThanks to Savoury Fare Athlone for helping us with our International Credit Union (ICU) Day celebrations in our Monksland Office. The National Credit Union Administration (NCUA) is reporting that Barclay’s Capital and Wachovia have agreed to resolve claims arising from losses related to purchases of faulty residential mortgage-backed securities (RMBS) by corporate credit unions. This is the question posed by an American Banker article regarding Monterey Credit Union’s conversion to a California state chartered bank. More than 14 months after its members voted to convert to a bank charter, Monterey Credit Union, a privately-insured credit union, appears to be trapped in regulatory limbo as regulators dither over its application to become a bank.

The National Credit Union Administration (NCUA) disclosed that Quemado Federal Credit Union (Quemado, TX) was merged with NCUA assistance. According to its most recent financial data, the credit union reported a loss of $163,243 through the first six months of 2015 after it increased provisions for loan losses by slightly more than $163,000. As a result, the credit union saw its net worth ratio fall from 13.68 percent at the end of the first quarter of 2015 to 2.91 percent as of June 2015.

Golden 1 Credit Union (Sacramento, CA) has agreed to settle a class action lawsuit that it improperly imposed overdraft fees even when members had enough money in their checking account to cover the transaction. She alleged it was improper for Golden 1 to charge courtesy pay overdraft fees when there was a positive ledger balance in her checking account that was enough to cover the transaction even though she had a negative available balance on her account.

Further, Manwaring alleges Golden 1 used a process to enroll members on the relevant dates in its overdraft program, which violated federal regulations that require affirmative consent to enrolling in an overdraft program. Golden 1 denies the allegations but agreed to settle the credit union overdraft fee class action lawsuit to avoid the expense and uncertainty associated with ongoing litigation. According to the settlement agreement, Golden 1 set aside $5 million to address class members’ claims. The National Credit Union Administration (NCUA) placed Helping Other People Excel Federal Credit Union of Jackson, New Jersey, into conservatorship.Credit Union

Helping Other People Excel FCU is a federally insured credit union with 96 members and assets of $290,927, according to the credit union’s most recent Call Report. Various news organizations reported that the credit union was taken over in 2014 by a group running an illegal Bitcoin exchange. It will pay you to shop around before making a decision on any specific secured credit card.

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