An excerpt from Chapter 14 of Community Capital, Race, Equity and the Credit Union Movement. Co-author Michel McCray continues telling how NCUA closed Kappa Alpha Psi FCU in 2010. (fourth in a total of five selections)
“The NCUA board members refused to dissolve KAPFCU at first,” I said. “They recognized that cash basis vs. accrual accounting increased expenses and created our net worth ratio problems.”
“That’s good.”
I explained, “Region IV officials convinced the NCUA board to liquidate KAPFCU based on a series of lies and false representations in an ex-parte proceeding.”
“Which is total bullshit.” Victor said, “We need to demand a personal meeting with Debbie Matz or get a hearing before the entire NCUA board.”
“They ain’t gonna listen to us, Vic,” I said. “They’re trying to screw us.”
“Well, if they won’t listen to us, then we need to get [Representative] Eddie Bernice Johnson,” Victor said, “and the whole freaking Congressional Black Caucus to reach out to NCUA on our behalf.”
“If that doesn’t work, Vic, we need to take them to court ASAP.”
Victor nods. “Who do we know in Washington, D.C.?”
Representative Eddie Bernice Johnson (D-TX) wrote a letter to Debbie Matz requesting a meeting or emergency hearing for KAPFCU. NCUA officials ignored the emphatic request from a distinguishedCongressional Black Caucus member.
They also ignored KAPFCU’s frantic meeting request in a last-ditch effort to stop the surprise liquidation.
I issued a press release announcing KAPFCU’s decision to sue NCUA. If successful, KAPFCU v. NCUA could be the Brown v. Topeka Board of Education case of the credit union movement.(pages 201-202)
Tomorrow: the Court Hearing