Financial Partners Credit Union (Springfield, Illinois) was assessed a civil money penalty by the Illinois Department of Financial and Professional Regulation for violating the regulatory unsecured loan limit to a borrower.
For a credit union with between $5 million and $10 million in assets, the maximum unsecured loan limit to a member is $18,000.
According to the findings, during the December 31, 2013 examination the credit union was ordered not to grant any more loans, extensions, or add-ons to Member 1.
On or about July 30, 2015, the credit union improperly granted an unsecured loan for $18,000 to Member 1. Member 1 already had $25,000 in unsecured debt.
During an examination on or about March 30, 2016, the Illinois credit union regulator identified the aforementioned loans.
On or about May 4, a letter was sent to the credit union about the violation. The credit union was given to June 23 to cure the regulatory violation and avoid a monetary penalty.
The credit union replied that it would not be able to cure the violation; because Member 1 refused to comply with the specified remedial action.
As of the July 27, the credit union had failed to comply with the specified remedial action and to cure the regulatory violation.
The Illinois Department Financial and Professional Regulation assessed a civil money penalty of $500 against the credit union. The civil money penalty could not exceed $1000.
Read the Civil Penalty Order.
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