Credit unions aren't necessarily federally insured!

Submitted by PAAMember on November 16, 2005 - 5:00pm. ::

Woah - were you aware that NOT all credit unions are federally
insured? holy moly - this is definitely not common knowledge!

I also found out through a friend (and I have verified this with both
the Shell Employee Federal Credit Union and the Texans Credit Union
(Texas Instruments credit union)!!!!) that ... if you have multiple
outstanding loans with a credit union - say.... your home mortgage
and a credit card for example, if you default on any outstanding
loan, the credit union can repossess other assets you owe $ on to pay
your debt!!

In this example, you default on your credit card, they can come take
your home as payment since the loans are financed through the same
institution! Did you KNOW that? read the fine print on your
paperwork! These stipulations are apparently different from
institutions classified as banks. I suppose it has something to do
with the fact that the members of credit unions typically "own" their
credit union or have a stake in it anyway, versus banks who are just
out to make the big bucks.

scary scary scary....

FAQs are below for more detail
http://www.ncua.gov/AboutNcua/ncua_faq.html

Here's a list of federally insured credit unions as of 2005
http://www.ncua.gov/data/directory/cudir.html

Wanna find out if your credit union is federally insured? look it up
here
http://www.ncua.gov/indexdata.html
Q4: Are all credit unions are required to report to NCUA? If not,
what types of credit unions do?

A4: All federal credit unions and state credit unions that
arefederally insured must report to us. Some non-federally insured
credit unions also report to NCUA at the request of their state
regulator.

Q5: How can I get a complete list offederally insured credit unions?

A5: The Credit Union Directory is complete as of December 1998. It is
located at http://www.ncua.gov/download/cudir.html. Financial Data on
individual credit unions can be found at http://www.ncua.gov/
indexdata.html.

Q6: How can I get a list of the credit unions that don't report to NCUA?

A6: Only non-federally insured state credit unions are not required
to report financial data to the NCUA. To get a list of them, contact
the state regulator in the states where they are located. These
states are Alabama, California, Idaho, Illinois, Indiana, Maryland,
Nevada, Ohio, and Puerto Rico.

Q7: Approximately how many credit unions are there that don't report
to NCUA?

A7: There are currently fewer than 500 non-federally insured state
chartered credit unions.