NCUA issues Cease and Desist Order

Member Deposits at New Bethel Federal Credit Union Remain Insured Up to $250,000

ALEXANDRIA, VA (December 23, 2014) — The National Credit Union Administration has issued a cease and desist order to New Bethel Federal Credit Union of Portsmouth, Virginia.

Accounts of New Bethel members remain insured by the National Credit Union Share Insurance Fund. Administered by 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. Individuals may visit the website at any time for more information about their insurance coverage.

New Bethel officials have consented to the order, which requires the credit union to:

  • Produce source documents demonstrating a certificate of deposit with a local bank is properly titled in the credit union’s name.
  • Provide the agency with complete and accurate financial statements and up-to-date member share and loan transactions.
  • Obtain a member account verification and independent audit through 2014.
  • Charge off all non-performing loans.
  • Cease granting any new loans.
  • Comply with the Bank Secrecy Act and the USA Patriot Act.
  • Ensure internal control reviews by the credit union’s Supervisory Committee.
Chartered in 1978, New Bethel Federal Credit Union has assets of $85,845 and serves 176 members, according to the credit union’s most recent Call Report.

A copy of the final order is posted on the NCUA website here. NCUA enforcement orders can be inspected Monday through Friday at NCUA’s Office of General Counsel from 9 a.m. to 4 p.m. Eastern. Copies may also be ordered by mail from NCUA at 1775 Duke Street, Alexandria, VA 22314-3428.

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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