What Is the NCUA?
The National Credit Union Administration is a government-backed organization that insures credit unions and financial institutions that accept deposits. This includes money transfer companies like TorFX, Wise, and WorldRemit.
They were formed on March 10th, 1970, and the headquarters are in Alexandria, Virginia. Based on 2020 data, they have 1,149 employees and an annual budget of $316.8 million. The Chairman is Todd M. Harper, and the agency preceding this one is the Bureau of Federal Credit Unions.
The NCUA is governed by a three-member board, confirmed by the Senate and appointed by the President of the United States. Board members typically stay in positions for six years until the next ones are sworn in.
What Are the Responsibilities of the NCUA?
This section covers the primary responsibilities of the NCUA so you can better understand their role in the US economy. In addition, consumers of money transfer companies can learn why this organization might be relevant to them.
Responsibilities of the NCUA:
Regulation: the NCUA monitors the credit unions in the United States to ensure they follow the regulations. This ensures that credit unions are not taking part in financial malpractice and taking advantage of their members.
Insurance: the NCUA provides insurance of up to 250,000 to thousands of members of credit unions. This ensures the money they have deposited with the credit union is safe. The insurance is similar to how depositors at federally-backed banks and other financial institutions have their money insured.
Analysis: the professionals working at the NCUA compile and analyze data on various aspects of credit union activity. This includes merger activity, changes in how they handle memberships, and broader economic trends that might impact credit unions.
Support: The NCUA offers support services to members of the credit union system. This includes grants and loans, training, field-of-membership services, and chartering. Also, they provide emergency liquidity, help manage the assets of failed credit unions and maintain the stability and health of the Share Insurance Fund.
Consumers: the NCUA works hard to protect consumers and credit union members. They do this by raising awareness of potential fraud and educating on how to choose the best services for their needs.
The NCUA also regularly provides news updates relating to credit unions. You can learn more about what new regulations or rules are in place through press releases, speeches, email newsletters, and conferences.
The Importance of the NCUA
Now let us turn our attention to why the NCUA is a critical organization. This will allow you to understand better why they are an integral part of the US financial markets. Therefore, consumers of money transfer companies that are also part of a credit union can have peace of mind.
Trust: the NCUA promotes trust in credit unions, which means its members will be more willing to use their financial services. Consequently, this supports activity in the US economy, which means it can continue flourishing.
Protects consumers: the insurance of up to $250,000 for credit union members provides a much-needed safety blanket in case a credit union goes bankrupt. This means the destructive financial practices of a credit union will not wipe out the savings of regular consumers.
Hold credit unions accountable: the regulations and monitoring work done by the NCUA ensure that credit unions behave appropriately in the financial markets and offer honest service to their members. When credit unions step out of line, the NCUA will likely notice it and then discipline the organization in question.
In one case study, the NCUA fined six federally insured credit unions for late call reports. The credit unions filed their Q4 2018 call reports after the deadline. The penalty's size depends on the delay's length and CU’s asset size.
NCUA Regulations
This section covers the regulations, crimes, and industries that the NCUA covers. Therefore, at a glance, you can get an idea of the scope and limitations of the NCUA.
Regulations: the Federal Credit Union Act is the source of the authority under which the NCUA operates. All federally chartered credit unions have to adhere to the rules and terms of the act. Additionally, the NCUA has rules and regulations that must be followed, and the general public can submit proposals for the organizations to consider.
Crimes: the NCUA does not deal with crimes like money laundering. Instead, they only look for instances where federally insured credit unions are not following the Federal Credit Union Act or its rules. When these rules are not followed, then fines are handed out.
Industries: the NCUA is limited to credit unions that are federally insured. They do not oversee other financial institutions, so their scope is limited. However, this focus allows them to do a great job of ensuring the credit unions provide a fair service to their members and are held accountable.
Accountability: the NCUA is accountable to the Government of the United States and the general public that uses credit unions.
What Regions Does NCUA Cover?
The NCUA only covers the credit unions operating in the United States. This includes all 50 states. The data analyst monitors international economic trends to understand what changes might occur in the United States. This allows the NCUA to provide the best oversight when creating new rules.
When Might You Encounter the NCUA?
You might encounter the NCUA if you want to make a complaint about a credit union that you are using. This might be if you feel they are breaking the rules or not providing the advertised financial services.
Also, you may want to follow the news that the NCUA puts out to ensure you have the latest updates within the credit union industry. You may get this news through multiple channels, including a newsletter, press releases, and conferences.
Can NCUA Make New Rules?
The NCUA can make new rules and regulations that all federally insured credit unions must follow. Additionally, they must enforce the Federal Credit Union Act, which other government-appointed organizations have changed.
How to Contact the NCUA?
This section provides basic contact details that consumers of money transfer providers can use to contact the NCUA. In addition, you can contact the organization to get a better idea of their work and if you want to report a credit union.
Phone: Consumer Assistance number is 800.755.1030, and the Federal Credit Union Fraud number is 800.827.9650.
Email: Webmaster@ncua.gov
Other Regulators
Bottom Line
To summarize, the National Credit Union Administration is arguably the most important organization in the credit union space. They ensure that credit union members receive adequate services, are insured, and hold the service providers accountable. Therefore, members can trust credit unions and use them without fear of getting scammed or losing their money.
We encourage you to learn more about how to send money to the United States by checking out the other guides on our websites. You can start with Send Money to the USA and Send Money to the USA from the United Kingdom. These guides are excellent choices if you want to find a money transfer company that offers competitive FX rates and low fees.
