Jamaica Postal Credit Union Discontinues Operations
New York State Banking Department Appoints NCUA Liquidating Agent; All Member Funds Insured
July 15, 2005
The National Credit Union Administration (NCUA) and the New York State Banking Department today announced that NCUA has accepted appointment as receiver/liquidator of Jamaica Postal Credit Union, located in Queens, New York, following the New York State Banking Department's decision to close the credit union.
NCUA and the New York State Banking Department shared concerns about Jamaica Postal Credit Union's financial and operational condition. The Banking Department assumed control of Jamaica Postal Credit Union's operations July 7, 2005, after determining the credit union had an impaired capital position and was experiencing irresolvable problems in the areas of capital adequacy, earnings, delinquency control, record keeping and management. Prior to its closing, the Jamaica Postal Credit Union operated at a postal facility in Queens and served approximately 400 members.
NCUA, as liquidating agent, has worked through its Asset Management and Assistance Center to provide for the continuance of credit union services to the extent possible and equitably complete the liquidation. NCUA has reached agreement with People's Alliance Federal Credit Union to assume most of Jamaica Postal Credit Union's share and loan accounts. Most of Jamaica Postal Credit Union's members were able to begin conducting business at People's Alliance Federal Credit Union Branches on Monday, July 11. All member accounts are fully insured up to $100,000 under the coverage provided by the National Credit Union Share Insurance Fund. If consumers have any questions or concerns about share insurance coverage, they should contact the NCUA directly at (512) 231-7900.
People's Alliance Federal Credit Union, with assets of $200 million, serves approximately 45,000 members through an extensive branch network covering Metropolitan New York. Their main office is located at 125 Wireless Boulevard in Hauppauge, New York and the phone number to obtain information about specific accounts is (631) 434-3500.
The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the savings of over 83 million account holders in all federal credit unions and many state-chartered credit unions.
The New York State Banking Department is the regulator for all New York State-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State's mortgage brokers, mortgage bankers, check cashers and budget planners. The aggregate assets of the companies and institutions supervised by the Banking Department are over $1.3 trillion. In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit the Website www.banking.state.ny.us.