ON DEADLINE

Published September 05, 2008, 2:10 p.m. EDT

Updated August 27, 2020, 1:04 a.m. EDT

3 Min Read

NCUA Expands 'Suspension Of Services' Policy

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ALEXANDRIA, Va.-NCUA, which allows the suspension of services to members who cause a loss, said credit unions may suspend services in other cases as well, such as in the case of members who are abusive to employees or other members or who present a potential loss to the credit union.

In a new legal opinion issued to Fairmont FCU, NCUA said the Federal CU Act permits suspension of services to members as long as there is a rational basis. A rational basis, said NCUA, exists when there is a relationship between the risk to a credit union and the restriction of services.

NCUA has ruled in the past that a credit union may suspend services to members who cause a loss and has indicated it also may bar abusive members from the premises, but the new legal opinion expands on what is allowed for suspension of service policies.

Any suspension of services policy should be in writing and a credit union should make its membership aware of the policy before it is enforced against any individual, said NCUA. In addition, said the agency, certain federal laws, such as the Equal Credit Opportunity Act, may prevent credit unions from suspending services in some instances.

Allpoint Network Expands Into 7-Eleven Stores

BETHESDA, Md.-Allpoint said it has added more than 5,500 ATMs in 7-Eleven convenience stores to its surcharge-free network.

The 7-Eleven machines are owned by Allpoint's parent, Cardtronics Inc., and were not previously part of the surcharge-free network.

About 1,100 financial institutions, more than 600 of them credit unions, are part of the Allpoint network, which also provides access to Cardtronics-owned ATMs in such national chains as Target, CVS, Walgreens and Costco.

More Big CUs Reporting Losses

ALEXANDRIA, Va.-More large CUs than ever before-including 16 billion-dollar institutions-sunk into the red for the first half of the year, according to NCUA data.

Among those reporting the biggest mid-year losses are: Arizona FCU ($42.5 million); Suncoast Schools FCU ($26.2 million); GTE FCU ($19.2 million); Eastern Financial Florida CU ($16.8 million); North Island Financial CU ($12.3 million); Wescom Central CU ($10.9 million); Kinecta FCU ($10.6 million); Texans CU ($8.8 million); Fairwinds CU ($6.5 million); Kern Schools CU ($5.6 million); and, Patelco CU ($3.9 million). Also: Allegacy FCU ($2.6 million); California Coast CU ($2.4 million); Westar CU ($2.2 million); Credit Union of Texas ($1.7 million); and, Travis CU ($1.7 million).

Only four of those credit unions reported losses in the first half of last year.

A total of 71 credit unions reported losses of more than $1 million for the first half of the year and nine of more than $10 million, including those that were put into conservatorship or merged into other CUs: Cal State 9, Sterlent, and Valley CU (see related story, Page 3).

Some of the CUs with the biggest first-half losses have agreed to be merged out. These include Kaiperm FCU, with lost $4 million and is working on a combination with Alliant CU. Also CapCom CU, which reported a $2.1 million loss, has agreed to be acquired by DFCU Financial.

Fryzel Taps Vega As Chief Of Staff

ALEXANDRIA, Va.-Newly appointed NCUA Chairman Michael Fryzel announced he has hired Sarah Vega, who succeeded him as state credit union regulator in Illinois, as his chief of staff.

Vega served 10 years as administrator of the Illinois Department of Financial Institutions' Department's CU Division, and headed the overall DFI for four years.

Fryzel himself succeeded former NCUA Chairman Ed Callahan as director of the Illinois DFI when Callahan moved to NCUA. Fryzel also sat on the state's CU Advisory Board for 17 years, forging close ties with Vega during that time.

Preferred Parking For 'Green' Cars

YORK, Penn.-First Capital FCU is building a "green" branch here that will include such environmental initiatives as reserved parking for fuel efficient vehicles, a rain water capture toilet system, and LED light fixtures.