Department of Insurance and Financial Services Places Saginaw's Valley State Credit Union into Conservatorship
FOR IMMEDIATE RELEASE: August 17, 2016
(LANSING) To protect members and to ensure uninterrupted access to funds, the Michigan Department of Insurance and Financial Services (DIFS) today took action to conserve Valley State Credit Union in Saginaw, Michigan. DIFS Director Patrick M. McPharlin issued an order that placed the credit union into conservatorship and appointed DIFS as the conservator, effective immediately.
“The 3,116 credit union members should be assured that their deposits are protected and they will have continued, uninterrupted access to their funds,” said McPharlin. “All Michigan state-chartered credit unions are insured by the National Credit Union Administration (NCUA) for up to $250,000 per depositor and sometimes more.”
As the appointed conservator, DIFS will assume control of Valley State Credit Union in order to ensure its financial stability and safe and sound operation. DIFS and the NCUA will work together to address issues related to the credit union’s operations and financial condition while maintaining member services.
Upon review of the current DIFS examination, Director McPharlin determined conservatorship of Valley State Credit Union was necessary to protect the public interest.
“We remain focused on continuing our efforts to provide appropriate regulatory oversight of the insurance and financial services industries, including state-chartered credit unions. We work to ensure that the businesses within these industries are safe, sound, and entitled to the public's confidence,” added McPharlin.
Members and customers of Valley State Credit Union with questions about this conservatorship should contact the Valley State Credit Union branch office at 989-793-5943.
Members with questions or concerns about action taken today is asked to call DIFS toll-free hotline at 877-999-6442.
NCUA is the federal agency that charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government.
Credit union members with questions about insurance coverage can find information online here, or they may contact NCUA’s Consumer Assistance Center at 800-755-1030 between 8 a.m. and 5 p.m. Eastern.