California Warns of a Third Unlicensed Credit Union in 16 Months
LibertyStarCU.com resembled a website belonging to the $8.7 billion Star One Credit Union.
For the third time in 16 months, California’s regulator said Tuesday that an unlicensed credit union was operating in the Golden State.
In a consumer alert notice, the Department of Business Oversight said it was notified of a website, LibertyStarCU.com, which closely resembled a website belonging to a licensed credit union, the $8.7 billion Star One Credit Union in Sunnyvale.
Libertystarcu.com claims to be operated by Liberty Star Credit Union, but it is not a licensed to do business as a credit union in California, according to the DBO.
The Liberty Star CU website also posted its six branches in the San Jose area and included a map identical to the one on Star One Credit Union’s website, which is licensed to operate in the state.
Star One CU did not post any member notification on its website or Facebook page about DBO’s consumer alert notice.
The libertystarcu.com site lists a New York area code and an ABA/Routing Number.
As of Wednesday afternoon, however, Liberty Star CU’s website has since been suspended.
A Google search of the unlicensed credit union showed the website had links to personal loans, boat loans, personal loans, its mobile app and a link to a press release announcing the retirement of its CEO and the appointment of a new leader.
The DBO urged consumers to exercise extreme caution before responding to any solicitation promoting loans or other offers from Liberty Star Credit Union.
In December 2018, the DBO slapped a cease and desist order against the Indian Federal Credit Union, which did not have the required certificate to operate as a credit union. The state regulator said IFCU had been operating out of a building in the Santa Clara Commerce Park, maintained a website and advertised services typically provided by credit unions such as checking accounts, CDs and bill pay
And in May 2018, a cease and desist order was issued against Coceptive Credit Union, which claimed it was doing business from the heart of San Francisco’s financial district, but the state regulator said the organization was never authorized to operate as a credit union. Nevertheless, since at least December 2015, Coceptive had been operating as a credit union and made loans through its website.