SAN DIEGO - As many as 7,000 city employees did not get their paychecks automatically deposited Aug. 8 because of an employee mistake at San Diego Metropolitan CU, which disburses the city's payroll.
San Diego Metropolitan CU President Joseph Schroeder said in a letter to city officials that employees who did not get paid could expect to receive the funds by Aug. 11 and anyone hit by a penalty or late fee as a result will be reimbursed by the credit union. "San Diego Metropolitan Credit Union guarantees each entry and will reimburse City employees any financial institution penalty fee as a result of this error," said Schroeder's letter.
About 3,500 employees who are members of the credit union received their direct deposits as usual, but the 7,000 who do not get direct deposit have their checks deposited in one of 171 other financial institutions. The credit union was contacting those institutions over the weekend about the problem.
As part of the credit union's internal controls, two employees need to sign off on the disbursements before they can be sent. One of the employees had signed off, but the other did not provide authorization until it was already too late for the automatic deposits.
City officials said it is the first such problem in the 15 years the credit union has handled the deposits.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
