The California Department of Business Oversight issued a cease and desist order on November 29 against Indian Federal Credit Union (Santa Clara, CA) and Atri Macharla.
The state regulator found that Indian Federal Credit Union was operating in the state without first obtaining a certificate allowing it to operate as a credit union in violation of state law.
The cease and desist order requires Indian Federal Credit Union to stop operating or advertising as a credit union until the credit union has obtained a certificate from the commissioner.
Moreover, Indian Federal Credit Union advertises itself as a federal credit union. But there is no evidence of Indian Federal Credit Union on the National Credit Union Administration's website.
The National Credit Union Administration (NCUA) is the charterer and regulator of federal credit unions.
Also, federal credit unions are required to be insured by the National Credit Union Share Insurance Fund. However, the credit union's website makes no mention to deposit insurance.
So, why hasn't NCUA acted to block this credit union from operating?
Shouldn't NCUA be concerned about a credit union calling itself a federal credit union?
It is possible that NCUA is not aware of this institution calling itself a federal credit union.
But after this commentary, NCUA has no excuse for not acting.
Read the enforcement order.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment