Why does the National Credit Union Administration (NCUA) have unclaimed deposits?
When a credit union with federal insurance is liquidated, NCUA’s Asset Management and Assistance Center (AMAC) is responsible for paying the share accounts to the members.
Invariably, some items may remain unclaimed. Some checks are never cashed; or the credit union’s address information was incomplete. There are also cases when the credit union does not have a recent address and are unable to receive a forwarding address from the post office.
Share accounts claimed within the 18-month insurance period are paid at their full insured amount. At the expiration of the 18-month insurance period, shares that are not claimed are considered uninsured and written down to share in the loss to the National Credit Union Share Insurance Fund (NCUSIF). Even if shares are uninsured when they are claimed, there may still be a distribution.
On rare occasions the liquidation of a credit union may result in surplus funds. If a surplus remains, a distribution to the shareholders is required. This may occur several years after the credit union is liquidated and it is sometimes difficult to locate these members.