While NCUA does everything it can to prevent credit union liquidations, there are instances where liquidation is unavoidable. Members and creditors of a liquidated credit union may experience uncertainty about the liquidation process, including questions about what to expect and what actions to take. The following key points are intended to address those concerns:
Your Deposits are Safe
NCUA operates the National Credit Union Share Insurance Fund (Share Insurance Fund) to protect accounts up to $250,000 at federally insured credit unions. IRA and KEOGH retirement accounts are separately protected up to $250,000. For individuals with accounts that total more than $250,000 at a single credit union, please discuss your deposit coverage with the appropriate financial professional.
The Share Insurance Fund has the backing of the full faith and credit of the United States, and no credit union member has ever lost a penny of insured funds.
Access to Your Money
If your credit union is liquidated, NCUA’s Asset Management & Assistance Center (AMAC) will send you a letter with specific information regarding the credit union’s closure. Follow the instructions provided in the letters to expedite the Share Insurance Fund payout that covers your insured accounts at the credit union. AMAC will send separate letters for any affected IRA or Keogh accounts. If you have a loan with your credit union, AMAC will send you an additional letter with specific information about your loans.
Stop Using Your Debit Card, ATM Card, and Checking Account
Destroy any debit or ATM cards associated with the closed credit union. NCUA will issue you a check for the remaining insured funds in these accounts.
If you have any outstanding checks at the time of liquidation, they may not clear. Notify any payees of the situation and arrange alternate payment methods for checks which have not already cleared.
Destroy any remaining blank checks.
Find a New Federally Insured Credit Union
To minimize the disruption to banking services, find another federally insured credit union or other financial institution and deposit your funds as quickly as possible.
NCUA’s Credit Union Locator Tool can help you find a new federally insured credit union.
Stop Direct Deposits and Automatic Withdrawals
Immediately redirect any direct deposits to your new financial institution. Direct deposits submitted after the date of the credit union’s closure will be returned to the sender.
In addition, the credit union’s bill pay, or automatic draft system, will stop on the day the credit union is liquidated. If you use the bill pay or automatic draft system to pay your bills, you will need to make other arrangements.
Stop Using Your Credit Card and Continue to Make Credit Card Payments
Destroy any credit card issued by the liquidated credit union, but continue to make timely credit card payments. Send your payments to the address provided on your credit card statement until AMAC notifies you of a change.
Continue to Pay Your Loans
The liquidation of the credit union does not cancel, forgive, or otherwise alter your loan obligation.
When a credit union is liquidated, AMAC collects payments for the credit union’s outstanding loans until it can transition those loans to a new servicer. Once in place, the servicer will offer options such as automatic payments, online payment services, and call‑center support to assist you in the transition.
If you stop making payments on your loan, it will be considered delinquent and you may be subject to collection activity, repossession, or foreclosure. If you were making your loan payments by automatic transfer from your account, you will need to pay your loan another way. If you use an external bill‑pay service from another financial institution, you must update that service to ensure your payments are routed correctly.
You will be notified once your loan has been transitioned to the new servicer. Until then, continue to make loan payments using the options below:
PAY.GOV
Pay.gov accepts payments made from either a bank account or a credit/debit card.
- Select "Make a Loan Payment"
- Enter "NCUA-AMAC" in the search box
- Select "NCUA-AMAC Loan Payments"
- Select "Continue"
- Follow the instructions on the screen
Online Bill Pay
Navigate to your financial institution's website or mobile app to access the Bill Pay feature.
Search and add payee: "NCUA AMAC."
If "NCUA AMAC" does not appear in the payee search listing, manually add it, and use the NCUA AMAC address listed below.
Include your 10-digit NCUA membership number plus your loan number in the Account Number field.
You can also send your loan payments in a check or money order to:
NCUA-AMAC
10910 Domain Drive, Suite 200
Austin, TX 78758
- Make the check payable to the closed credit union.
- Write your account number on the check or money order.
Pledged Shares
If your shares are pledged as collateral on your loan, NCUA will hold your shares in a non-interest-bearing account.
Creditors
Creditors who are owed money for a service or product provided to the closed credit union may be eligible to file a claim. Refer to the Creditor Notice for the specific information on filing a claim. Additionally, find general information for creditors with a link to the Proof of Claim Form on the Filing Claims page.
Additional Information
For additional facts for members, borrowers, and creditors of a credit union placed into liquidation, please visit MyCreditUnion.gov.
For information on the systems used and the information collected in the liquidation process at a federally insured credit union, please review the NCUA’s Systems of Records Notices, NCUA-10.