NCUA shutters Georgia credit union after only six months of operations
The federal regulator granted the organizers of Soul Community Federal Credit Union a charter in December but closed its doors last week.
The National Credit Union Administration has liquidated Soul Community Federal Credit Union in Georgia just six months after it was chartered.
“This short of a time frame from charter to liquidation is unheard of,” Mark Treichel, former NCUA executive director and founder of Credit Union Exam Solutions, told Tyfone.
The regulator issued the organization’s charter in December, and it had amassed $308,500 in assets by the end of March.
The NCUA said it closed Soul Community and discontinued its operations after determining the credit union was insolvent and in violation of numerous provisions of the Federal Credit Union Act and NCUA rules and regulations, including operating in an unsafe and unsound manner.
When a new charter is issued, the organizers sign a Letter of Understanding that restricts what they can do by when, Treichel said.
“The reference to violations of laws and regulations could mean that they made loans that were not authorized or invested in products that were not allowed. The violations and/or the lack of trust were so egregious that they decided a slap on the wrist was not adequate, so they liquidated it,” Treichel said. “It could be fraud related too.”
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Soul Community was chartered primarily to serve people who live, work, worship, study, and participate in programs, associations and businesses in Austell, Georgia.
It had just 21 members, according to NCUA call report data.
Many of the fields on the credit union’s call reports remain empty, including its net income reported for both 2024 and the first quarter of 2025.
Soul Community was the second credit union shuttered by the NCUA this year. The agency also closed Unilever Federal Credit Union of Englewood Cliffs, New Jersey, in April.
More recently, Aldersgate Federal Credit Union in Marion, Illinois, became the second credit union to be conserved this year by the NCUA. In January, the regulator conserved Butler Heritage Federal Credit Union in Middletown, Ohio.
Soul Community was one of four credit unions to receive a federal charter last year. Thus far in 2025, two charters have been awarded.
“This short of a time frame from charter to liquidation is unheard of.”
– Mark Treichel
Former NCUA Executive Director and
Founder of Credit Union Exam Solutions
