ALEXANDRIA, Va.-NCUA last week said federal credit unions may provide emergency financial services to anyone, even nonmembers, during natural disasters and other emergencies, such as Hurricane Irene.
"In addition to providing services to their members, federal credit unions may provide financial services to nonmembers as part of their authority to engage in charitable activities under their incidental powers," NCUA said in a new letter to CUs.
Under the agency's long-recognized authority to engage in charitable activities, credit unions can "and should" provide an appropriate range of emergency financial services, including check cashing to non-members, access to ATMs or other means to cash, said NCUA.
Because the Federal CU Act generally limits service to members, credit unions providing these emergency services must do so on a charitable basis, "meaning that FCUs may not impose charges for services that exceed their direct costs."
A copy of the letter can be found at
