A Philadelphia-based federal credit union is in some trouble.
The National Credit Union Administration, the federal regulator and insurer of credit unions, has assumed control of service and operations at Borinquen. It serves parts of the Olney and Kensington neighborhoods. NCUA spokesperson David Small says there’s nothing for the credit union’s 8,600 members to worry about. “Their deposits are insured, the credit union is operating as usual, and all the services are still there,” said Small. He said it should take less than a year to work out the kinks. “It’s just us going in, making sure that the books are well-maintained, and we will make an attempt to return this credit union to the ownership of the members,” Small said. Borinquen members retaking control is one option. Another is merging with a nearby credit union. Another is liquidation, which Small says is unlikely. Only eight of the 7,300 credit unions in the U.S. have been taken in to conservatorship this year.