NAFCU is planning for the afterlife.
The trade association sent a letter to credit union CEOs advising them of alternative options if United Resources – the new corporate planned as a successor to Western Bridge – does not meet capitalization goals that had been approved by the NCUA.
In a letter sent to CEOs of credit unions that are members of Western Bridge Corporate FCU, NAFCU President/CEO Fred Becker suggested they consider using another corporate credit union, the Federal Reserve or ProDraft Services, a North Dakota-based CUSO that was recently designated a preferred partner by NAFCU Services.
Becker wrote that if Western Bridge is liquidated it is “unclear how much time its members will have to switch to another provider,’’ and advised the CEOs to “consider potential alternatives as soon as possible.”
As of July 15, United Resources said it had raised $22.8 million toward a capital goal of $200 million. Its fundraising deadline is Aug. 31. As of June, Western Bridge said it served 885 credit unions.