September 9, 2003

The Office of Financial and Insurance Services (OFIS) is warning Michigan consumers about "First Rate Credit Union" and potential fraudulent activity. OFIS has learned that "First Rate Credit Union" is using The Daily Telegram as a vehicle to perpetrate fraud on Adrian-area residents. "First Rate Credit Union" placed an advertisement in The Daily Telegram that appeared on September 4, 2003.

Michigan residents need to be advised that “First Rate Credit Union” is not chartered in any state or by the federal government and is not insured by the National Credit Union Association ( NCUA).  The NCUA is the federal agency responsible for chartering and regulating federal credit unions along with insuring the deposits of both state and federal credit unions.

“A preliminary investigation has been conducted by our agency and the Fraud Investigation Unit of the NCUA,” said OFIS Commissioner Linda A. Watters. "First Rate Credit Union" is not in fact a credit union, but appears to be a criminal effort to defraud consumers of their money and assets.”

It appears the persons responsible for this activity are placing advertisements in local newspapers in an effort to lure consumers into financial transactions purporting to be loans and debt counseling services. These persons are attempting to obtain personal financial information from consumers. The personal financial information provided by consumers could then be used to steal consumers’ money and assets through electronic means and to conduct other fraudulent activities through identity theft. It is believed the persons responsible for this activity may be operating out of a foreign country and using pre-paid cell phones.

Consumers who have contacted “First Rate Credit Union” are encouraged to contact the National Credit Union Association’s Fraud Hotline at 800-827-9650 to obtain further details.

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