Right after closing time on Thursday, federal agents walked into the IBEW Local 816 Federal Credit Union in Paducah and closed it down.
The National Credit Union Association issued a news release on their website indicating that the Paducah-based credit union is the sixth credit union in the nation to fail so far in 2014.
The statement said: "NCUA made the decision to liquidate IBEW Local 816 Federal Credit Union and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.
IBEW Local 816 Federal Credit Union served 929 members and had assets of approximately $6.3 million, according to the credit union’s most recent Call Report. Chartered in 1954, IBEW Local 816 Federal Credit Union served members, employees and their families of the International Brotherhood of Electrical Workers, AFL-CIO, in Paducah."
The NCUA went on to say they will be notifying account holders of the credit union. Members with additional questions about their insurance coverage may
contact the Center toll-free at 877-715-0777 Monday through Friday
between 8 am and 5 pm. Individuals may also visit the
MyCreditUnion.gov website at any time for more information about
insurance coverage.
NCUA is the lesser known government agency that insures credit union accounts just like the FDIC insures bank accounts, for up to $250,000.
UPDATE: CPlant Federal Credit Union, also based in Paducah, has notified West Kentucky Star that they will be assuming the credit union's share holder's accounts with IBEW Local 816 Federal Credit Union in Paducah. An official with CPlant tells us they will have a representative at the IBEW Local 816 Federal Credit Union facility on Friday, and any share holders of the failed credit union should go to that facility to have any questions or concerns answered.
CPlant says the accounts of the share holders for the failed credit union will be transitioned into CPlant share holder accounts.
Here is the news release from CPlant:
The National Credit Union Administration selected C-Plant Federal Credit Union to serve I.B.E.W. Local 816 FCU members. To provide continued credit union services, member insured shares and share certificates were transferred to C-Plant Federal Credit Union. I.B.E.W. Local 816 FCU members are now members of C-Plant FCU with all rights and privileges. Each member share account is insured to $250,000 by the National Credit Union Share Insurance Fund.
C-Plant staff will be located at the former I.B.E.W. Local 816 Federal Credit Union today located on 4515 Clarks River Road Paducah, KY 42003 to answer questions and provide services. By early next week, former I.B.E.W. Local 816 FCU members will be able to utilize all C-Plant branch locations.
“C-Plant FCU is excited about our new relationship and to be serving former I.B.E.W. Local 816 FCU members. C-Plant FCU’s goal is to make this transition a positive one.” – Paul Adams, President/CEO
On the Net:
For more on the credit union closure, click HEREMore information from the CU Times by clicking HERE
