State Seizes Control Of Postal Employee Credit Union In Westchester

YONKERS, NY — A Westchester-besed credit union that serves 486 U.S. postal employees and retirees who reside in Westchester, Putnam, Dutchess and Orange Counties is now under state conservatorship.

This week, the New York State Department of Financial Services (DFS) took possession of the Yonkers Postal Employees Credit Union (Yonkers CU) and appointed the National Credit Union Administration (NCUA) as conservator.

The DFS said it placed Yonkers CU into conservatorship in order to protect its members. The condition of the credit union has steadily deteriorated since 2018, when current management assumed responsibility for operations, according to the agency.

Citing several examinations conducted jointly by the NCUA and the DFS, the institution has been rated "critically deficient."

"The management of Yonkers CU has continually failed to comply with orders issued by the NCUA and DFS to remediate outstanding issues and has created roadblocks for potential mergers with other credit unions that would have benefitted the members of Yonkers CU," the agency said in a statement announcing the takeover.

Normal member services will continue and the NCUA will oversee operations and members can continue to conduct normal financial transactions, such as making deposits, accessing funds and making loan or other payments.

Yonkers CU is a New York state-chartered credit union, with total deposits of approximately $5.25 million as of December 31.

Member accounts at Yonkers Credit Union are protected by the National Credit Union Share Insurance Fund, which is administered by the NCUA. The Share Insurance Fund insures individual accounts up to $250,000; 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 fund has the backing of the full faith and credit of the United States.

For answers to frequently asked questions that Yonkers CU members may have, visit the NCUA website.