Member Services Continue; Deposits Remain Protected by Share Insurance Fund
ALEXANDRIA, Va. (Feb. 28, 2018) – Members of First Jersey Credit Union are now members of USALLIANCE Federal Credit Union following today’s liquidation by the New Jersey Department of Banking and Insurance.
The Department liquidated First Jersey, of Wayne, New Jersey, and appointed the National Credit Union Administration as liquidating agent. USALLIANCE Federal Credit Union of Rye, New York, immediately assumed most of First Jersey’s assets and loans and all member shares.
The new USALLIANCE Federal Credit Union members should experience no interruption in services. Members’ accounts remain insured 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 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.
USALLIANCE Federal Credit Union is a federally chartered credit union that serves 101,717 members and has assets of nearly $1.4 billion, according to the credit union’s most recent Call Report. Members with questions can call USALLIANCE at 800.431.2754 between 7:30 a.m. and 8 p.m. Eastern Monday through Friday and between 9 a.m. and 2 p.m. Saturday.
Members with questions about Share Insurance coverage can find information online at NCUA’s consumer website, MyCreditUnion.gov.
The New Jersey Department of Banking and Insurance made the decision to liquidate First Jersey Credit Union and discontinue its operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own. First Jersey Credit Union is the second federally insured credit union liquidation in 2018.
At the time of liquidation and subsequent purchase and assumption by USALLIANCE Federal Credit Union, First Jersey Credit Union served 9,045 members and had assets of almost $86 million, according to the credit union’s most recent Call Report. Chartered in 1929, First Jersey Credit Union provided financial services to members in Bergen and Passaic Counties and the underserved areas of Essex, Hudson, and Union Counties in New Jersey.
NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share
Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.