The state has closed down the Border Lodge Credit union in Derby Line.
The Vermont Department Of Financial Regulation says the action comes after examiners raised serious concerns about the credit union’s operation.
The Border Lodge Credit Union opened in 1963 and served 1,100 members. It had just over $3 million in assets when it was closed and taken over by the federal government. Officials offered no explanation for the action.
Clifford Peterson, general counsel with the Department Of Financial Regulation, says consumers will be protected.
He says those with loans from the credit union should submit payments to the National Credit Union Administration.
Deposits of up to $250,000 are also insured by the federal agency.
"They will be going through the process of verifying account balances and making sure that depositors are protected," Peterson explained
A spokesman for the National Credit Union Administration says it could take two weeks for the accounts to be verified and for depositors to receive their money.
Credit Union members can call the administration’s Consumer Assistance Center at 800-755-1030 for more information or visit MyCreditUnion.gov.
Peterson declined to comment on the specifics of the case, which is being handled by the U.S. Attorney for Vermont.
According to the Association Of Vermont Credit Unions, Border Lodge was among the smallest of Vermont’s 26 credit unions.
Association president Joseph Bergeron says Border Lodge Credit Union had one paid employee and operated from a home. According to Bergeron it’s very unusual for the state to close a credit union.
"I’ve been here for going on 34 years and this is a pretty rare occurrence. I can’t remember the last time a credit union was just outright closed like this by the regulator," says Bergeron.
Border Lodge Credit Union is the eleventh federally insured credit union to be closed in the U.S. this year.