Transitioning U.S. Central Bridge Federal Credit Union Automated Clearing House (ACH) Services

DATE: January 2012     LETTER No.: 12-CU-02

TO: Federally Insured Credit Unions

SUBJ: Transitioning U.S. Central Bridge Federal Credit Union Automated Clearing House (ACH) Services

ENCL: Users of U.S. Central Bridge ACH Services Transitioning to Other ACH Service Providers

Dear Board of Directors:

If your credit union receives ACH services from one of the 18 corporate credit unions or other ACH providers noted on the enclosed listing, please carefully read the information in this letter.

The National Credit Union Administration (NCUA) recently announced that the bidding process for the U.S. Central Bridge Federal Credit Union (U.S. Central Bridge) payment services did not result in the selection of acquirers for its autosettlement and ACH services. Consistent with the orderly wind-down of other U.S. Central Bridge services (for example, investment custody and international wires), NCUA is now moving forward with the orderly wind-down of payment services.

This means the 18 corporate credit unions that currently utilize U.S. Central Bridge ACH services, along with The Members Group, will transition those services to a new service provider in 2012.

The transitioning of service providers is nothing new to the corporate credit union system. Many corporate credit unions have successfully and seamlessly changed service providers in the past. The key component of a successful transition is the planning process. As part of their business plans that were developed last year, all corporate credit unions were required to have a service transition plan in place, in anticipation of U.S. Central Bridge services being unwound.

Some corporate credit unions have already begun this transition process. NCUA is working with each of the corporate credit unions that utilize U.S. Central Bridge ACH services to make any final necessary revisions to those transition plans, so that they can be implemented in a timely manner. Each affected corporate credit union’s transition plan will differ based on the unique services and operations of individual corporate credit unions.

If your corporate credit union currently utilizes the ACH services of U.S. Central Bridge, a representative of the corporate will be contacting your credit union to inform you of any actions required on your credit union’s part to ensure service to your members will continue uninterrupted.

With thorough planning, communication, and training, any impact to your credit union and your members should be minimal. Your corporate credit union will be working with you throughout this process. Your prompt response and handling of any actions required of your credit union will aid in a smooth transition.

In addition to the information provided to you by your corporate credit union, NCUA will be providing information and updates on a regular basis. NCUA will closely monitor the transition process at the corporate and natural person credit union level.

Each corporate’s timeline will likely be unique, as it will not be possible to transition all services to all credit unions at the same time. As such, NCUA is facilitating a transition period to accommodate the final wind-down of U.S. Central Bridge’s ACH services. Our objective is to ensure that all of U.S. Central Bridge’s ACH services be unwound and transitioned to other providers by no later than December 31, 2012.

The transition of ACH services will likely impact a large number of credit unions. However, other services offered by U.S. Central Bridge (for example, international wires) will also be unwound during 2012. Not every corporate uses all of the services provided by U.S. Central Bridge. If your corporate credit union utilizes any of the other services being unwound, you will be notified of any actions that you will need to initiate to ensure a smooth transition.

The wind-down of U.S. Central Bridge is one of the final stages of the corporate resolution process. As set forth at the beginning of this process, one of our key goals remains minimizing disruption of services to credit unions and their members. We have achieved this goal to date. I am confident that by all of us working together, we will continue to meet that goal going forward.

If you have any questions, please contact your corporate credit union, district examiner or regional office.

Enclosures

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