31 credit unions agree to late-filing penalties for third quarter of 2014

ALEXANDRIA, VA (January 22, 2015) — Thirty-one federally insured credit unions subject to civil money penalties for filing third-quarter 2014 Call Reports late have consented to those penalties, the National Credit Union Administration announced today.

The late filers will pay a total of $12,820 in penalties. Individual penalties range from $138 to $1,878. The median penalty was $176. The Federal Credit Union Act requires NCUA to send any funds received through civil money penalties to the U.S. Treasury.

“The number of late filers continues to drop, and that’s encouraging,” NCUA Board Chairman Debbie Matz said. “Hopefully, we’ll soon have full compliance, which is really necessary for efficient data gathering and effective regulation. NCUA’s Office of Small Credit Union Initiatives is still available to help smaller institutions, and we will keep working to get to the point where all credit unions file Call Reports on time.”

Assessment of penalties primarily depends on three factors: the credit union’s asset size, its recent Call Report filing history and the length of the delay. Of the 31 credit unions paying penalties in the third quarter:

  • Nineteen had assets of less than $10 million;
  • Seven had assets between $10 million and $50 million; and
  • Five had assets between $50 million and $250 million.

No credit unions with assets greater than $250 million filed late in the third quarter.

One of the credit unions assessed penalties had been late in a previous quarter. A list of credit unions filing late in the third quarter and agreeing to pay civil money penalties is available here.

A total of 47 credit unions filed Call Reports late for the third quarter. NCUA consulted regional offices and, when appropriate, state supervisory authorities to review each of those cases. This review determined mitigating circumstances in five cases that led to credit unions not being penalized. In December, NCUA informed the remaining 42 credit unions of the penalties they faced and advised them they could reduce their penalties by signing a consent agreement. NCUA also said it would initiate administrative hearings against credit unions that did not consent. NCUA granted waivers for 11 of those credit unions. The remaining 31 credit unions consented.

NCUA sends reminder messages about Call Report filing deadlines that include information on how to receive technical support to handle filing problems. NCUA’s Office of Small Credit Union Initiatives has dedicated an Economic Development Specialist to assist small credit unions in filing Call Reports on time. NCUA also has produced a video describing how to file Call Reports.

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 more than 98 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At and Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.

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