Credit Unions safe?? Think again...

Source - WSET 13

Lynchburg, VA - The fate of Lynrochen Federal Credit Union is sealed. It is now defunct. Jerry Walton has a checking and savings account there. WSET asked Walton, "Did you ever expect something like this?" Walton answered, "Never, never in my lifetime." And he hasn't taken out a loan recently. So, he knew something was up when the credit union claimed he did.

Video of news report is at the source link.

Apparently the credit union took loans out in members names as well as draining their savings accounts to "just a few bucks".

Talk about a kick in the teeth. Of course FDIC will reimburse members up to $250,000 but that may not come till well after the investigations. The source says that they are "in the middle" if investigations now.

So just as a warning... if you are a member of a credit union such as myself, keep a very careful eye on your finances and if you see something funny going on then I'd withdrawal as much as you can, if not all, then call the law.

Thread is just a heads up to credit union members who think that they are "safer" when in fact, they may be dangerous just in different ways.

reply to post by Terminal1


I have often said, ANY BANKING INSTITUTION is crooked and will attempt to take your hard earned toilet paper!
It is what they are there to do.
Hold onto your own cash, buy a safe, get dogs and guns!

reply to post by g146541


Yea. I am a member of Truliant Credit Union after pulling my money from BoA. I now am more suspicious of the credit unions now. I thank the stars that I have everything paid off including my home so as long as my health holds up i have no use for credit which is really your ability to get into debt. Screw debt and credit being they are pretty much the same thing.

Got me seriously considering doing a "matress stuffing" maneuver.

3 flags and a very valid topic and no posting...
Folks must all be at work.

reply to post by g146541


Yea.. maybe I should have made the thread title more sensationalistic.

reply to post by Terminal1


So it's not a financial crisis per se, but criminal actions then? likely down to individuals. This happens all the time, we had a senior bank branch official for a prominent high street bank do this for some time, a reputable travel agency that changed hands, on a similar scam. The travel agency was closed, the bank was unaffected, even though large sums of money were involved.

This is scary.
I recently put my money into a credit union and with the crappy interest rates these days I wonder why I bother. Might as well get a safe deposit box and keep cash in it. Also the whopping $40 in interest I made this year I had to pay back $10 in tax on it. So $30 freaking bucks to "lend" my money to this institution.

Yes, Credit union safe.I experienced most of credit union services and credit union credit cards have some benefits as compare to other banks issued cards.


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