Wednesday, August 4, 2010

Veritas FCU Hit With Enforcement Action

The National Credit Union Administration (NCUA) has published a Letter of Understanding and Agreement (LUA) entered into with the officials of Veritas Federal Credit Union, Franklin, Tennessee.

The LUA identifies corrective actions needed at the credit union. Adverse conditions identified in the LUA include:
 Weak management – failure to address prior LUA and DOR;
 Weak internal controls;
 Out of balance general ledger conditions;
 No Supervisory Committee audit and no complete member account verification since 2008 – prior to relocation of the credit union from California to Tennessee; and
 Inadequate Allowance for Loan and Lease Loss account balance – required funding is expected to drop Net Worth from 7.6% to 4.9%.

For example, the LUA has instructed the $33 million credit union by the end of August to start repossession and foreclosure actions on loans that are at least 90 days delinquent. It is requiring the credit union's ALCO Committee to meet monthly. The credit union has agreed to hire an outside party to reconcile WesCorp settlement accounts and the ATM accounts.

1 comment:

  1. Sadly, I'm not surprised. The formerly known as Nissan credit union management laid off all of the CA management team and then gradually closed down the one branch in CA, which had more walk-in traffic than the TN location and a staff which actually cared. They have no interest in conducting business properly, and the CA members are fleeing to other credit unions in droves. As we formerly loyal members continue to close our accounts, only those who cannot are bad risks will continue to maintain accounts with Veritas.



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