PSCU to Assume All Members, Loans, Assets Following Veterans Health Liquidation
Michigan’s Department of Insurance and Financial Services has liquidated Detroit-based Veterans Health Administration CU, with NCUA named as the liquidating agent.
Effective immediately, Romulus-based Public Service CU (PSCU) has assumed all of Veterans Health’s members, assets, loans and shares. According to its most recent NCUA Call Report, Veterans Health had 1,297 members and $2 million in assets. It was chartered in 1954 and primarily served employees of the Detroit and Ann Arbor Veterans Administration Medical Centers.
According to an NCUA press release, DIFS made the decision to liquidate Veterans Health after determining the credit union was insolvent with no prospect for restoring viable operations.
As new members of PSCU, former Veterans Health members should not experience any interruption in services, and their accounts are fully insured up to $250,000 by the National Credit Union Share Insurance Fund. Retirement funds in IRA and KEOGH accounts are also protected up to $250,000.
Public Service CU has assets of more than $156 million and serves more than 23,000 members.
Recognizing the importance of strong internal controls and risk mitigation for credit unions of all sizes, MCUL has convened an Internal Fraud Taskforce chaired by EVP/COO Ken Ross. This team will examine best practices for risk mitigation that can be utilized by credit unions of every asset size.
More information on MCUL’s Internal Fraud Taskforce will be released in the coming months.
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