As discussion of the impacts of NCUA's recent memo outlining termination dates for various services offered by U.S. Central Bridge grows in the industry, one deadline has generated heated discussion–and worries–on the part of some credit union leaders. That is auto settlement, a comparatively obscure wholesale settlement service where U.S. Central Bridge acts as a kind of middleman between large vendors (ATM networks for instance) and corporate credit unions and, in turn, their members. Nothing comparable exists in the traditional banking world, said sources, and finding replacements by the May 31 termination date set by NCUA is proving to be a challenge.
"While Dec. 31, 2012 may be enough time for the ACH conversions, the May sunset date for auto settlement will be a challenge unless the entire platform can be sold to a third-party," said Thomas Bonds, CEO of Corporate America.
At Catalyst, Vice President Amy Fuller said, "This will be a challenging transition as it does not exist elsewhere in the market."
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