West Hartford Credit Union
December 5, 2008 – 8:20 pmThe State of Connecticut closed it’s first credit union in a decade today as the Connecticut Department of Banking assumed control of West Hartford Credit Union Inc. and appointed NCUA receiver. West Hartford Credit Union is a tiny credit union with just under $3 million in assets, but the closure of the 58 year old institution is somewhat big news in the state.
“This credit union’s demise threatens consumers in the worst possible economic climate,” he said. “My office appreciates the excellent work done by banking department officials in ensuring that account holders and consumers are fully protected.”
West Hartford Credit Union wasn’t closed as a result of the economic downturn, rather because it lacked adequate capital and had significant loan losses because of poor administration and record-keeping according to State Banking Commissioner Howard Pitkin.
“It’s too bad. It was mismanagement, and now the credit union won’t be a source of credit for these people,” Pitkin said.
As usual all depositors accounts are insured by the NCUA National Credit Union Share Insurance Fund to at least $250,000 on regular accounts and $250,000 on certain retirement accounts. NCUA said it will issue checks to members holding verified share accounts in the credit union within one week.
Click here for the official NCUA press release.
