Member deposits at federally insured credit unions remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.
Credit union members with questions about insurance coverage can find information online, or they may contact NCUA’s Consumer Assistance Center at 800-755-1030, Monday through Friday, between 8 a.m. and 5 p.m. Eastern.
During natural disasters, NCUA works with state regulators and state league organizations to ensure federally insured credit unions are aware of and can utilize NCUA’s assistance. Under the agency’s disaster relief policy, the NCUA will, when necessary:
- Encourage credit unions to make prudent loans with special terms and reduced documentation to affected members;
- Reschedule routine examinations of affected credit unions;
- Guarantee lines of credit for credit unions through the Share Insurance Fund; and
- Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
Low-income-designated credit unions affected by flooding can apply for up to $7,500 in Urgent Needs grant assistance to repair damage or restore services to members. Information about Urgent Needs Grants is available online. Any credit union needing NCUA assistance should contact their regional office.
Resources for Consumers
Consumers can find up-to-date information on the storm from the National Hurricane Center’s information page. Consumers can also find information on how to prepare for a hurricane and other resources on the Department of Homeland Security’s information page.
Credit union members with questions about their credit union should visit NCUA’s consumer site MyCreditUnion.gov.
Credit union members with questions about their Share Insurance coverage should contact the NCUA’s Consumer Assistance Center at 800.755.1030 Monday through Friday between 8 a.m. and 5 p.m. Eastern.
Beware of Email Phishing Scams During Disasters
Credit unions and their members are advised to exercise caution in handling any email from duplicitous charitable organizations requesting donations, even if it appears to originate from a trusted source. These fraudulent emails commonly appear after major natural disasters and often contain links or attachments that direct users to phishing or malware-infected websites. Visit NCUA’s Fraud Prevention Center for additional information on how to recognize, take action and protect yourself and your personal financial information from this kind of scam.
While we always hope for the best, it is prudent that we plan and prepare for the worst. NCUA urges all federally insured credit unions to perform periodic routine reviews of their disaster preparedness and response plans. These plans should be commensurate with the complexity of operations and focus on minimizing interruptions of service to members and maintaining member confidence in times of an emergency. Previous disasters have taught us many important lessons about disaster preparedness and response. Credit unions can find additional general preparedness information below.
Resources
NCUA Resources:
- Urgent Needs Grant Application for Low-income Credit unions
- Letter to Federally Insured Credit Unions 09-CU-13, Hurricane Preparedness and Pandemic Planning
- Letter to Credit Unions 06-CU-12, Disaster Preparedness and Response Examination Procedures
- Letter to Credit Unions 06-CU-11, Interagency Guidance Lessons Learned by Institutions Affected by Hurricane Katrina
- Risk Alert 06-CU-01, Disaster Planning and Response
- Letter to Credit Unions 01-CU-21, Disaster Recovery and Business Resumption Contingency Plans
Interagency Resources:
- Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster
- FFIEC IT Handbook Booklet: Business Continuity Planning
- Lessons Learned from Hurricane Katrina: Preparing Your Institution for a Catastrophic Event
Other Resources: