X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ALEXANDRIA, Va.-NCUA permanently closed the doors of $451,477 Dallas Educators Federal Credit Union in Selma, Ala. May 5. The agency did not have the opportunity to try to restore the credit union to its members because more claims came in for savings than there was money in the institution, NCUA Director of Public and Congressional Affairs Cliff Northup said. He added that there were serious discrepancies between NCUA’s information and the credit union’s records. Specifically, delinquencies were not accounted for properly and when those figures were corrected, the credit union was critically undercapitalized for Prompt Corrective Action standards. Temporarily NCUA had allowed withdrawals up to $1,000, according to Northup, but now funds will not be distributed for 30 to 60 days while NCUA goes through the process of verifying all 323 members accounts. Checks will be issued as account balances are verified. Bookkeeping at Dallas Educators was so sketchy, Northup explained, agency officials could not tell what funds belong where. “There is a way [to figure it out]. It’s just going to take a little more time,” he said. The funds are insured by the National Credit Union Share Insurance Fund. NCUA had been operating the credit union under a conservatorship since April 19. Northup said this situation was a bit unusual in that NCUA did keep the credit union’s local mall office open the early part of last week so members could discuss their concerns with agency officials. Dallas Educators former management was working to take control of the institution when it was conserved. In an article in the Selma Times-Journal, former manager and treasurer Ollis Grayson Jr., partly blamed NCUA for the credit union’s problems. The Federal Bureau of Investigations is looking into whether criminal activities occurred at the credit union. NCUA Chartered Dallas Educators in 1961 to serve the employees of the Dallas County Board of Education who work in Dallas County, Ala., employees of the credit union and members of their immediate families.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.