NCUA Announces Closure Plans for U.S. Central
The NCUA today announced its plans for winding down US Central by yearend in a memo to U.S. Central users signed by Scott Hunt acting as conservator.
The memo detailed looming fee hikes and made clear that NCUA “will be monitoring your corporate’s efforts to transition away from the [U.S. Central] APEX platform. Specifically, OCCU [NCUA’s Office of Corporate Credit Unions] is requiring that each U.S. Central Bridge member corporate develop a plan and timeline to execute the transition U.S. Central Bridge. This plan must be completed and submitted to the OCCU by February 24, 2012.”
The memo added, “NCUA will keep ACH operations and pricing status quo through June 30, 2012. Beginning July 1, 2012, pricing for ACH processing will be increased 80% to minimize costs at the bridge and to incent the timely transition away from APEX. Ultimately, it is NCUA’s intent to cease ACH processing at U.S. Central Bridge by no later than December 31, 2012.”
Hunt also wrote, “I recognize the wind-down of U.S. Central Bridge will require significant effort on your corporate’s operations. However, since members did not secure a member-driven solution and no other provider submitted an acceptable acquisition offer, winding down the bridge operations is the course of action we must take.”