The National Credit Union Administration (NCUA) has granted a federal charter and Share Insurance Fund coverage to Fair Break Federal Credit Union in Memphis, Tennessee. This marks the second federal credit union to receive a charter under the NCUA’s provisional charter pilot initiative.
The provisional charter pilot is one of several recent measures by the NCUA aimed at modernizing and improving credit union chartering. This initiative allows organizers to obtain a federal credit union charter and provides them with 12 months to secure the necessary capital to begin operations. However, a charter under this pilot does not authorize a credit union to accept member deposits or originate loans until it reaches its targeted level of donated capital.
Fair Break Federal Credit Union is designated as a low-income credit union, primarily serving individuals who live, work, worship, or attend school in the Memphis-Clarksdale-Forrest City, TN-MS-AR Combined Statistical Area. It also serves those participating in programs aimed at alleviating poverty or distress within the community. The credit union plans to offer basic savings and lending services such as share accounts, share draft accounts, online banking, auto loans, personal loans, and credit builder and payday alternative loans.
The charter for Fair Break Federal Credit Union became effective on May 30, 2024. It is the third federal credit union chartered in 2024.
The NCUA is an independent federal agency created by Congress to regulate, charter, and supervise federal credit unions. Backed by the full faith and credit of the United States government, the NCUA operates and manages the National Credit Union Share Insurance Fund (NCUSIF), which insures deposits for more than 135 million account holders across all federal credit unions and most state-chartered credit unions. Additionally, the NCUA focuses on consumer protection and financial literacy education.
Media Inquiries:
Joe Adamoli
JAdamoli@ncua.gov
703.518.6572
