SELMA, Ala. – The surviving daughter of a deceased member of Selma Dallas FCU has filed suit against NCUA saying the federal regulator failed to reimburse her late mother for $25,000 she had in her account when the agency liquidated the fraud-riddle credit union in 2004.
The suit claims that NCUA’s Asset Management Assistance Center, which was weighing through fraudulent accounts at the tiny ($500,000) credit union, ascertained that the member, Ola Calhoun, had a balance of just $985 at the time of the liquidation. Subsequent efforts failed to verify the claims of the member before she died in May 2006, despite efforts by the daughter, Martha Calhoun. NCUA subsequently determined Calhoun had a zero balance in her share account.
Later, the daughter submitted an old passbook from 1993 showing a balance of $24,898, but that claim was denied, with NCUA ruling the old passbook did not substantiate the mother’s account. Calhoun filed an appeal of her claim with NCUA, which was also denied.
