NCUA Approves Loan CollectionBid
ALEXANDRIA, Va. - (10/21/05) -- NCUA said Thursday that a CUSO ownedby Maine credit unions may buy non-performing loans from creditunions, then provide debt collection services on the loans. In anew legal opinion letter, NCUA said the debt collection plan ispermissible as long as the CUSO does not engage in any debtrestructuring, which would be akin to consumer loan originations, aproscribed activity for CUSOs. Under the plan, the CUSO willprovide debt collection services to its credit union owners, usinga salaried attorney from one of the owner credit unions. The CUSOwill reimburse the credit union for the attorney's work and willseek reimbursement from the credit unions using the debtcollection.