Federal authorities have taken over and dissolved a New Jersey-based credit union.
The National Credit Union Administration (NCUA) has announced the liquidation of Unilever Federal Credit Union (UFCU), based in Englewood Cliffs, New Jersey, in April 2025. This marks the first liquidation by the NCUA in 2025 and comes amidst a broader increase in credit union liquidations during that period.
The insolvency of UFCU appears linked to underlying financial difficulties and regulatory pressures that hindered its operational viability, leading to its closure and liquidation. According to Credit Union Times, UFCU reported a loss of $134,891 at the end of 2023, followed by a loss of $336,490 at the end of 2024. The credit union's call report revealed an operating efficiency ratio of 88%, with high non-interest expenses and low non-interest income. Additionally, UFCU spent a substantial amount on professional and outside services, and the five full-time employees' salary and benefits were significantly higher than the peer average.
The NCUA's Asset Management and Assistance Center will contact individuals holding verified accounts in Unilever Federal Credit Union within one week. Each Unilever Federal Credit Union member's account is insured up to $250,000. Members are asked to contact the NCUA if they do not receive a letter within 10 days of liquidation.
The liquidation of UFCU is also connected to the dismissal of two NCUA board members, Todd Harper and Tanya Otsuka, by President Trump. Although details are somewhat limited, it is evident that this action was connected to broader controversies and dissatisfaction surrounding NCUA’s management and regulatory oversight of credit unions, including Unilever FCU. The firings likely reflect political and administrative conflicts over the governance and regulatory philosophy at the NCUA, especially concerning how closures and rescues of financially troubled credit unions should be handled.
Unilever Federal Credit Union primarily served employees of Unilever's U.S. operations and its subsidiaries who work in or are paid from Englewood Cliffs. UFCU had approximately $46.6 million in assets and served about 1,450 members.
Post-liquidation, a call for restructuring NCUA’s regulatory approach and deposit insurance fund management was underway, emphasizing credit union autonomy and innovation rather than government burden. The Share Insurance Fund, which backs credit unions, is worth $22 billion.
The NCUA declined further comment on the matter. Creditors with claims are asked to submit their completed forms, along with supporting documents, to the agency by Aug. 28. The fired NCUA board members, Todd Harper and Tanya Otsuka, are suing Donald Trump and other government officials over their removal.
The liquidation of Unilever Federal Credit Union, a financially troubled institution, was influenced by its own industry-specific financial difficulties and regulatory pressures. Despite the liquidation, the NCUA continues to manage fintech innovations within the business sector, aiming to improve credit union operations and ensure member protection.
