NCUA Reports to Congress on
Hurricane Katrina Response
Sept. 7, 2005, Washington, D.C. -- Edward P. Dupcak, Region II Director and Chairman of NCUA’s Hurricane Katrina Task Force provided the House Financial Service Committee, Senate Banking Committee and Members of Congress from Louisiana, Mississippi and Alabama with the status of the 139 federally insured credit unions within the path of the hurricane and explained steps taken to mobilize agency resources to ensure members have financial service.
NCUA staff in Region III (Alabama and Mississippi) and Region IV (Louisiana) is contacting each potentially affected credit union to access their operating level, lend assistance and address critical problems.
“The goal is to ensure each credit union member has access to financial service to meet their immediate needs.” Mr. Dupcak told Committee Members. “NCUA has formed staging areas outside the impacted areas to assist credit unions on an individual basis.”
NCUA reported to Congress that as of this morning, of the 139 impacted credit unions, there were 32 non-operational credit unions in Louisiana, 5 non-operational in Mississippi and 1 non-operational in Alabama. Fully and partially operating credit unions account for over 90 percent of assets and members.
On August 31, 2005, the agency established an emergency call center operating seven days a week. Establishing a special number and email address for each of
the impacted states enables the public and credit unions to call NCUA for assistance to contact their credit union or learn about alternate service providers.
Over 1000 calls have been received at the NCUA call center, most are from credit union members asking how to access cash outside the credit union operating area.
Ongoing operations to assist hurricane victims
- The NCUA website www.ncua.gov/hurricane is continuously updating contact information for affected credit unions as news arrives. The listing includes operating status and other important information for credit union members.
- NCUA explained the credit union system includes a shared branching network with over 1000 shared branches throughout the United States. Members of affiliated credit unions have various levels of service at these shared branches.
- NCUA issued a temporary ruling last week that allows federal credit unions to provide assistance to other credit unions and non-members in the areas affected by the hurricane under certain conditions. Emergency services, including check cashing, ATM access, and other services to meet short-term emergency needs can be provided under the authority to engage in charitable activities.
- NCUA is working with the Corporate Credit Union System to ensure settlement accounts clearing checks and other cash presentments continue to be operational. NCUA can use its insurance authority to guarantee loans to meet the settlement demands on impacted credit unions to help stabilize financial markets and continue service to credit union members.
- NCUA contacted local prime data processing vendors to provide potential backup should credit unions need support to return to full operational status.
Edward Dupcak also noted the impressive mobilization of the credit union system within the affected area.
“Cooperation among credit union leagues and trade organizations, corporate credit unions, service providers, and the state and federal regulatory authority will result in providing member service in this area as soon as feasible,” Dupcak said.
Accounts at federally insured credit unions are safe
Dupcak closed reiterating the important fact that regardless of when federally insured credit unions are able to resume operations, members’ funds are insured by the National Credit Union Share Insurance Fund (NCUSIF). Deposits in a NCUSIF insured credit unions are protected up to $100,000, and the NCUSIF is backed by the full faith and credit of the U.S. Government.”
NCUA Emergency Call Center 1-800-827-6282
Alabama: KatrinaAL@NCUA.GOV
Louisiana: KatrinaLA@NCUA.GOV
Mississippi: KatrinaMS@NCUA.GOV
NCUA 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 NCUSIF, insuring the savings of over 84 million account holders in all federal credit unions and many state-chartered credit unions.
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