Loan Scams: Vigilance Never Out Of Fashion (Print Preview)
Despite the rash of frauds, the NCUA is optimistic that the health and stability of credit unions have improved so much that it is projecting a positive outlook for the National Credit Union Share Insurance Fund this year.
- Credit unions seek balance in combating fraud.
- Internal controls, quality applicants still important factors.
- Providing relief during financial hardships remains a core goal for most.
With the recent guilty verdict against a businessman that scammed $7.5 million from the former Lockheed Credit Union to obtain a number of loans, the decision may have offered another instance of assurance that the public is becoming increasingly fed up with fraud.
The $747 million Texas Trust Credit Union in Mansfield hasn’t had any type of internal or external problems with its lending programs because it adheres to regulatory requirements and what are essentially good business practices, said Willy Kelsey, chief operating officer.
“No one person has the authority. We have all types of checks and balances in our systems. Yes, we do take losses on loans. Some do go bad, but we stay the course,” Kelsey said.