The National Credit Union Administration Board permanently closed the Dallas Educators Federal Credit Union this week, according to a notice sent to the members of the credit union.

The credit union, which served many retired teachers from the area, was placed in conservatorship on April 19 by the NCUA, which began managing the credit union.

A temporary office has been set up by the NCUA at the Selma Mall, next to JC Penny’s where accounts can be discussed, however no cash will be dispersed.

When the story first broke last week, representatives from the NCUA said they hoped to return control of the credit union.

“Ultimately, the goal of the NCUA will be to return control back to the credit union’s members,” said NCUA spokesperson Molly Schar.

But a week later, they’ve announced the permanent closure of the facility.

“None of us were surprised by the actions of the NCUA,” attorney John Wesley Kelly IV said. “I don’t think they ever went into this with the mindset of restoring the institution to a strong financial position or returning it to the control of its members.”

Kelly, who’s firm represents the credit union, added that they have tried, unsuccessfully, to make contact with the NCUA.

“We have never been contacted by a representative of the NCUA,” he said.

While cash won’t be available at the Selma Mall office, the NCUA pointed out that the credit union’s members have some protection. The National Credit Union Share Insurance Fund insures each member of the credit union up to $100,000.

“It’s been the board’s position all along that this is just a tragic and unnecessary loss,” Kelly said.

According to a press release, the NCUA stepped in and took control of the credit union due to its financial condition and significant record-keeping issues.

Last Friday, the Credit Union’s former manager and treasurer, Ollis Grayson Jr., held a press conference blaming the NCUA for the credit union’s problems.

Grayson said the NCUA imposed “unreasonable requirements” on the local credit union, forcing it to write-off substantial loans the management believed to be collectable.

“As a result of this charge-off, the credit union was required to fund its loan loss account by over $135,000 and it did so, at the expense of then being determined by the National Credit Union Administration of being undercapitalized,” Grayson said.

It has been confirmed that the FBI is investigating the credit union’s financial situation.

“Despite rumors and innuendoes circulating over the last several days, the credit union had been managed honestly and it was a solvent business when it was taken over,” Grayson said last Friday. “It was current on all of its debts and obligations and any decline in its financial position was caused, in large part, by the very officials who took it over.”

The NCUA is taking appointment to discuss individual accounts.

The office will be open Monday, May 10, from 10 a.m. to 4:30 p.m. and from 9 a.m. to 4:30 p.m. through Thursday, May 13.

To set up an appointment, call 334-877-0297.