Credit: Rudzhan/Adobe Stock
The NCUA has placed Jackson Area Federal Credit Union into conservatorship, citing unsafe and unsound practices at the institution.
The $162 million credit union, which serves more than 15,500 members primarily tied to local government entities in the Jackson, Miss., area, will remain open and operational while the NCUA works to address issues affecting its operations.
NCUA officials said members will continue to have uninterrupted access to services, including deposits, withdrawals, loan payments, and share accounts. Deposits remain protected by the National Credit Union Share Insurance Fund, which insures individual accounts up to $250,000.
The conservatorship took effect Wednesday. The agency did not provide additional details regarding the specific operational or financial concerns that prompted the action.
Jackson Area FCU was originally established to serve employees of the City of Jackson and Hinds County, Miss., before later expanding its field of membership to include dozens of additional employee groups.
The credit union's main office in Jackson will remain open during normal business hours as the NCUA oversees operations and evaluates next steps.
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