Posted on 02/15/2009 6:22:01 PM PST by rabscuttle385
February 16, 2009, Alexandria, Va. – The National Credit Union Administration (NCUA) placed Center Valley Federal Credit Union of Wheeling, West Virginia, into liquidation Friday, February 13, 2009.
The NCUA Asset Management and Assistance Center will issue checks to individuals once they have verified the balances in share accounts in the Center Valley Federal Credit Union. Through the NCUA National Credit Union Share Insurance Fund, credit union members’ deposits are insured to at least $250,000 on regular accounts and $250,000 on certain retirement accounts.
NCUA made the decision to liquidate Center Valley Federal Credit Union and discontinue its independent operation after determining that the credit union is insolvent and has no prospects for restoring viable operations. At the time of liquidation, the credit union served 3,150 members and had deposits of approximately $8 million. This is the second federally insured credit union to close in 2009.
NCUA chartered Center Valley Federal Credit Union in 1975 to serve employees of the Ohio Valley Medical Center in Wheeling, West Virginia, and the underserved area known as South Wheeling.
The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund, insuring the savings of nearly 89 million members in all federal credit unions and most state-chartered credit unions. NCUA operations are funded by credit unions, not tax dollars.
I thought I read that the banks are unsafe but the credit unions were okay.(?)
I was just thinking today about taking all our money out of our credit union. A while back, I read that the small time customers are the last to know that a bank/credit union is going to fail, and by the time they go to get their money, it’s all gone because the bigger banks have already taken out their money.
Dh and I were talking about that too. Scary times right now.
So it was set up to serve folks who couldn't even get CRA loans? No wonder it failed.
Someone's been trying to cause you needless worry. My advice is to ignore ANYTHING from that source.
As long as you don't have over the insured limit in a bank (or Credit Union), and look for the FDIC or NCUA sticker or plaque at the teller station, you should come out with all your money (see disclaimer below). When the institution fails, insured deposits are usually transferred to an assuming bank, and you can go visit your money the next banking day. ATM cards and checks will still work. If there is no assuming bank, outstanding checks won't clear, but you'll get a check for your full deposit amount, usually by mail.
There are only a couple of situations to be worried about. If you have a brokered CD, there may be an additional delay as the money will be sent to the broker, who has to send it to you.
And finally, if you have a delinquent loan with the bank, the deposit account may be set off against the loan.
So if you are current on your loans where you keep your money, have less than $250,000 in that institution, and you deal directly with them, you should have no worries. If you want a little bit of extra peace of mind, split your money between two banks.
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