CUs That Filed Late Say They Have Option To Pay Or Appeal NCUA Fines

Two credit unions that have filed late call reports and face civil money penalties say they have until mid-July to either pay their fines or appeal.

Of the 104 federally insured credit unions that missed the April 25 call report filing deadline, 84 were notified by NCUA last month that they face fines, according to a report from Northwest Credit Union Association's website.

The steepest fine is reported to be above $10,000.

NCUA has not yet released an official list of the CUs that have been fined, or the amounts.

However, one of the institutions being fined is in Oregon and four are in Washington, according to NWCUA, which noted if the five Northwest credit unions sign consent orders, their penalties will range from $243 to $1,900.

The $4.3 million Longshore FCU in Hoquiam, Wash., told Credit Union Journal that NCUA sent the institution a notice that outlined the fine.

"The letter also said we can appeal the fine or settle for a smaller penalty," said CEO Ruth Bryson, declining to disclose the amount. She said she believed the credit union had until mid-July to make the decision.

Another CU, asking for anonymity, told CU Journal the same story. The CEO explained that NCUA's notice stated the credit union can appeal the penalty, which is more than $10,000, or accept the fine and pay half the total. It has until mid-July to make the decision, the CEO said.

NCUA spokesperson John Fairbanks said that NCUA has "only notified late filers of the penalty that may be assessed. But since the process is not complete, no credit union has been ‘fined' at this point."

All of the late filers Credit Union Journal has interviewed shared similar stories about why they were fined, saying their efforts to upload call reports encountered a problem, something they say they were unaware of until the agency notified them that the report had not been received.

Bryson said LFCU filed ahead of the April deadline, but failed to go back into the system to verify the call report had made it to NCUA, saying it's "an expensive lesson for sure."

Small credit unions comprised the bulk of the late filers: 93 of the late filers this time are credit unions with assets of less than $50 million: 64 have less than $10 million in assets, 29 between $10 to $50 million, 11 between $50 to $250 and none are above $250 million.

Of the 104 that filed late, 85 had been on time the previous quarter.

Even with the big drop in first-quarter filings this year, NCUA Board Chairman Debbie Matz said more than 100 is unacceptable.

"The goal is full compliance," Matz said in an earlier statement. "More credit unions filed their call reports in a timely fashion, but 104 late filers is still far too many. It was particularly troubling that most of the credit unions that filed late for the first quarter had not done so the previous quarter, so they came in late even after NCUA brought this issue to their attention and announced plans for assessing penalties."

Tardy CUs could be fined up to $1 million a day, according to NCUA.