Search
 

New Utah CU Causes Confusion, Regulator Steps In

SALT LAKE CITY - A recent alert from the Utah Department of Financial Institutions on a credit union it says is not state or federally-chartered has resulted in a big misunderstanding claims a company executive. New Century Technologies Inc. Chief Executive James Barrus told the Salt Lake Tribune that he...

By Staff Writer | Updated on April 06, 2004

SALT LAKE CITY – A recent alert from the Utah Department of Financial Institutions on a credit union it says is not state or federally-chartered has resulted in a big misunderstanding claims a company executive. New Century Technologies Inc. Chief Executive James Barrus told the Salt Lake Tribune that he formed a corporation in early March that would eventually serve as a credit union for the company’s employees when he started hiring them. Barrus said he was able to incorporate his company over the Internet but the system is supposed to flag any names with the word “credit union” or “bank.” Orla Beth Peck, UDFI Credit Union Supervisor said in this case, the system did not flag “New Century Technologies Credit Union.” UDFI started receiving calls from consumers wanting to know if the CU was legitimate. When UDFI discovered the new corporation listing, it contacted the state’s Department of Corporations, which pulled Barrus’ credit union incorporation, Peck said. She said Barrus was given a credit union start-up application and a copy of the related law. Peck told the Tribune that “Utahns need to be careful who they are doing business with” and “one of our biggest fears is that someone will come in here claiming they are a credit union or a bank and start taking deposits without having any insurance.”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.