Consent Order Issued to Mid-Cities Credit Union

The California Department of Business Oversight issued a consent order against Mid-Cities Credit Union (Compton, CA).

Mid-Cities Credit Union is privately insured by American Share Insurance.

As of September 2017, the credit union posted a loss of $703,246.

The consent order requires the credit union to retain management and Board of Directors acceptable to the Commissioner.

Within 45 days of the date of this order, the members of the Board of Directors will attend and participate in financial literacy training that is designed for credit union board of directors.

Also, the $20.1 million credit union needs to start a search to identify mergers partners that are acceptable to the Commissioner.

By December 31, 2018, the credit union would have an operating expense-to-average assets ratio of no more than 6 percent. As of September 2017, the credit union reported an operating expense ratio of 8.70 percent.

Also, the credit union is expected to develop, adopt, and submit a Net Worth Restoration Plan. As part of the plan, the credit union will seek to attain a minimum quarterly profitability of 0.10 percent of total assets.

Furthermore, the credit union was expected to improve procedures for the oversight of any vendors or independent contractors, who provide debt collection services.

The order was signed on December 11, 2017.

Read the consent order.