D. Edward Wells Credit Union, the only Black credit union in
Western Massachusetts (Springfield),
protests takeover by the Federal government

AFRICAN AMERICAN NEWSIRE (Springfield, MA) Members, friends and community supporters of the D. Edward Wells Federal Credit Union in Springfield, MA marched for "justice" on Saturday, February 22 to protest the seizing of the only Black Credit Union in Western, Massachusetts, the D. Edward Wells Credit Union on Friday, February 21, 2003. This collective voice called for justice came as the Federal Government announced that the Credit Union is now placed into Conservatorship by the National Credit Union Administration (NCUA). The credit union has 2,600 members, nearly $4.9 million in assets, serves largely low-income and diverse communities in Springfield, MA., one of Massachusetts' most diverse cities. In the past 40 years, the Credit Union has helped over 5,000 families with loans totaling over $6,000,000.

Protesters gathered to support the 43 year old Black-owned financial institution, in light of the long-term struggle it has had with the National Credit Union Administration, an organization that has a track record of closing record numbers of small credit unions and Black credit unions across the U.S. "This closing comes on the Friday before the Monday hearing we were to present an audit confirming that there are no 'serious operational deficiencies' at the Wells Federal Credit Union," said Carol Aranjo, CEO of the D. Edward Wells Credit Union, who has been a national voice for the support of the small credit unions across the country and a national advocate for Black-owned credit unions. "The NCUA ordered a CPA Audit which was completed, and revealed that there were no issues warranting the assumed control of the Credit Union by the NCUA."

This is a wake-up call for African Americans, Black-owned financial institutions and everyone across diverse communities who seek to maintain Black-owned institutions and financial services in our diverse cities across Massachusetts, the New England region and the country. "We must protect our vital community resources like the Credit Union," said Aranjo. "The D. Edward Wells Credit Union, has a 43 year history and to date has proven to inspire youth. This year, the Youth Credit Union Program celebrates its 15th year anniversary. Over the past 14 years, the role model Youth Credit Union Program has successfully trained over 1,000 youth and has traveled internationally to tell its story."

"The credit union should have a right to remain as a credit union," said Aranjo. "We want to make sure that we don't lose a vital community-based financial institution.... and one that we have fought so hard to create, maintain and keep …to give us loans, to provide mortgages and a variety of other services….and more importantly, to role model for our children that Black-owned financial institutions are important and bring economic empowerment to an entire community."

Officially, the Wells Federal Credit Union has complied with all NCUA requests, even though the NCUA audited the Wells Federal Credit excessively, compared to other similar credit unions around the country. In January 2002, the Wells Credit Union filed a lawsuit against the regulators for abuse of power and harassment for excessive examinations of the Credit Union. The average hours for examinations of all credit unions is approximately 76 hours and the average hours examining the Wells Credit Union is 156 hours for the last five years. "If the NCUA was concerned with our performance, they should review the audit that was prepared by an NCUA approved firm" said Aranjo.

###