Monday, September 28, 2009

Clearstar Financial CU Closed by Regulators

Clearstar Financial Credit Union, a Reno-based financial institution with 16,000 members, was seized and closed by regulators.

According to George Burns, commissioner of the Nevada Financial Institutions Division, $941 million United Federal Credit Union of St. Joseph, Mich., will assume all of Clearstar's deposits.

Clearstar Financial was chartered in 1949 to serve members of the Reno Classroom Teachers’ Association. Today, Clearstar serves
anyone who lives, works, worships, volunteers, does business, or attends school within thirteen Northern Nevada counties.

At the time of its closure, the credit union had $144 million in assets.

Burns said he closed the credit union because Clearstar's capital was inadequate and its loan losses were increasing.

This is the second Nevada-based credit union to fail this year. Community One Federal Credit Union was seized by NCUA in August.


  1. Are you really going to "write" about every credit union closure? Where is the balance on the 95 banks closed this year? What about the $10 billion the FDIC lost on Indymac? I guess this author is really a "johnny one note!"

  2. Dear Anonymous:

    I believe you would prefer that there be no discussion about cU closures.

  3. It is a fair discussion. But how about a "fair and balanced" discussion?


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    Repo Notice Class Action Certified
    The Auto Fraud Legal Center recently had a class action certified in San Diego County. The case is Arben Selimi v. Mission Federal Credit Union, Case No. 37-2009-00086697-CU-CO-CTL. The case alleges that the notices that Mission Federal sends to consumers after their vehicles are repossessed do not comply with California law, specifically the Automobile Sales Finance Act. The notices, Selimi alleges, overstated the amount that consumers had to pay in order to get their vehicles back after they were repossessed. In addition, the notices did not provide an address to either mail or deliver the request for an extension of the time period before the vehicles were sold after they were repossessed. Superior Court Judge John Meyer certified the case as a class action. The time period of the class is June 1, 2007 to the present. No ruling has been made on the merits of the case. However, the remedy that Selimi is seeking for these improper notices is the waiver of any deficiencies that existed after the sale of the vehicles.

    The following data concerns complaints processed by the BBB over the last 36 months.
    Complaints Closed As:
    Closure Type Definitions
    1 month
    12 months Last
    13 months
    24 months Last
    25 months
    36 months Total Last
    1 month
    36 months
    Complaints Resolved 6 3 1 10 90.91%
    Complaints Unresolved 0 0 0 0 0.00%
    Administratively Closed 1 0 0 1 9.09%
    Complaints No Response 0 0 0 0 0.00%
    Total 7 3 1 11 100.00%
    Complaints Concerning:
    Nature Definitions

    Closure Type Definitions
    Advertising Issues Selling Practices Delivery Issues Repair Issues Service Issues Customer Services Issues

    Complaint(s) Resolved 0 1 0 0 1 4
    Complaint(s) Unresolved 0 0 0 0 0 0
    Administratively Closed 0 0 0 0 1 0
    Complaint(s) No Response 0 0 0 0 0 0
    Total Last 1-36 Months 0 1 0 0 2 4
    Total Last 25-36 Months 0 0 0 0 0 0
    Total Last 13-24 Months 0 0 0 0 0 2
    Total Last 1-12 Months 0 1 0 0 2 2

    Nature Definitions

    Closure Type Definitions
    Guarantee Or Warranty Issues Product Issues Refund of Exchange Issues Contract Disputes Billing or Collection Issues

    Complaint(s) Resolved 0 0 0 2 2
    Complaint(s) Unresolved 0 0 0 0 0
    Administratively Closed 0 0 0 0 0
    Complaint(s) No Response 0 0 0 0 0
    Total Last 1-36 Months 0 0 0 2 2
    Total Last 25-36 Months 0 0 0 1 0
    Total Last 13-24 Months 0 0 0 1 0
    Total Last 1-12 Months 0 0 0 0 2
    Mouse-Over the complaint count to view detailed statistics.

  5. Fair and Balanced? Most Credit Unions are operating outside of their charter and competing for Bank business. When these behaviors by Credit Unions cease and or Credit Unions are receiving the same consideration as Banks (Tax) then there can be no fair or balanced discussion.

  6. Any body need information on Mission Federal Credit Union and closed school student loan processing?

  7. Funny Keith, your blog is called "Credit Union Watch" and yet people think you should be obliged to write about banks?!?

    CUs get really uncomfortable when anyone points out their warts.



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