Compliance Blog

Written by Steve Van Beek

On Friday, NCUA issued a press release regarding the failed recapitalization of U.S. Central.  From the release:

"The member-driven solution to charter PayNet as a vehicle to provide back-office payment and  settlement services to consumers through U.S. Central Bridge Corporate Federal Credit Union’s member corporate credit unions did not achieve sufficient support to launch PayNet as a viable business model. Agent for the conservator of U.S. Central Bridge, Scott Hunt, announced activation of NCUA’s contingency plans in a letter to the members of U.S. Central Bridge today.

“NCUA will look to alternative resolution plans to facilitate the orderly transition of member services to other service providers,” said Hunt. “While we have a fiduciary duty to achieve the least, long-term cost resolution of U.S. Central Bridge, we remain committed to minimizing disruption to its corporate members, and in turn, natural person credit unions and American consumers.” 

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NAFCU will be hosting a special member call-in today at 2 p.m. Eastern to discuss the corporates.  Scott Hunt, NCUA's Director of the Office of Corporate Credit Unions will participate in the call.  The call-in is free but registration is required.

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The CFPB's Office of Servicemember Affairs has issued a Request for Information regarding the products and services currently offered to servicemembers.  The Request has a short turnaround time of 14 days - with comments due by September 20, 2011.