Moving swiftly on the heels of the announced failure to form a new payments corporate out of US Central Bridge, the NCUA has announced its activation of “contingency plans” to keep payments smoothly flowing within the corporates universe.
“NCUA will look to alternative resolution plans to facilitate the orderly transition of member services to other service providers,” said Scott Hunt, acting as agent for the conservator of US Central Bridge. “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.”
“We have no plans to immediately shutter U.S. Central Bridge operations, nor will we ask corporate credit unions to immediately transition away from U.S. Central Bridge,” Hunt said in a statement released by NCUA.
Hunt also serves as director of NCUA’s Office of Corporate Credit Unions.
The statement added: “The 15 corporates involved in the failed [payments] initiative should conduct due diligence on possible alternatives to ensure any eventual transition does not disrupt service to their members.”