ALEXANDRIA, Va. (1/27/14)--The Kansas Department of Credit Unions said it recently uncovered "unsafe and unsound" practices at Parsons Pittsburg CU that have moved the state regulator Friday to place the $13.5 million-asset credit union into conservatorship and name the National Credit Union Administration as agent to handle its daily operations.
Parsons Pittsburg CU is a Kansas-chartered, federally insured credit union headquartered in Parsons, Kan. It is a community-chartered credit union serving those who reside or are employed within a 45-mile radius of Labette, Bourbon, Cherokee or Crawford counties . The credit union also operates a branch in Pittsburg, Kan.
While continuing normal member services, the department and NCUA will work to resolve issues affecting the credit union's safety and soundness. Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments and use shares.
The credit union's Sept. 30, 2013, call report shows it has 1,470 members.
The regulators have prepared a Frequently-Asked-Questions document for members with questions about the conservatorship. Top among the items addresses is that the National Credit Union Share Insurance Fund continues to insure individual accounts at Parsons Pittsburg up to $250,000 and that the NCUSIF has the backing of the full faith and credit of the U.S. government.
Use the resource link to access the FAQ.