What to Do if Your Credit Union Closes

NCUA operates and manages the National Credit Union Share Insurance Fund, which insures deposits up to $250,000. A depositor who has multiple deposits may qualify for more than $250,000 in share insurance coverage if the depositor’s accounts are of different legal ownership and the requirements for each type of legal ownership are met.

In the event that your credit union closes, you will receive a letter within a few days from the Asset Management and Assistance Center (AMAC), the NCUA office that conducts credit union liquidations and performs management and recovery of assets.

AMAC works quickly to return your funds and to minimize the disruption that the closing of your credit union causes. Funds are often returned within three days when there is no suspicion of fraud at the credit union.

Here’s how the process typically works:

Payment of Insured Share Accounts

  • If your aggregate share balances (total savings invested with the credit union) are less than or equal to $5,000.00, you will automatically receive a check for the full amount of your insured shares.
  • If your aggregate share balance is more than $5,000.00, or if you have an outstanding loan, you may be asked to complete and return a Member Confirmation and Affidavit form, which AMAC will provide. AMAC will review your claim and pay out your shares as soon as their review is completed.

Payment of Insured Retirement Accounts

  • You will receive a verification of account balance form, which you must complete in order for your funds to be released. Completed forms must be received within 30 days.

Payment of Outstanding Loans

  • Send only loan payments to the AMAC address provided to you.
  • You will receive loan payment coupons as soon as you verify your loan balance. To avoid delinquency, you must continue to make your loan payments on time, even if you have not received payment coupons.

Creditors will be asked to file claims with AMAC by a certain date, as specified.

Any creditor claims filed after that date will be untimely and the claimant will be deemed to have waived all rights with respect to the claim.

What If Your Credit Union Closes Voluntarily?

AMAC is responsible for involuntary liquidations. If your credit union elects to close, your credit union will contact you directly with information about your account. NCUA’s regional offices monitor these voluntary liquidations.