US tech credit union shuts down amid fraud claims

TECHNOLOGY CREDIT UNION — LTE-based technology credit union CLOSE has closed down its doors amid claims of fraud in its IT products.CLOSE, a branch of Credit Union First USA, announced on Monday that the company had shut down its operations. 

CLOSE is the second major credit union in the U.S. to shut down over the past week. 

“We take this matter seriously and have made the decision to suspend CLOSE operations effective immediately,” said Credit Union National President Mike Condon in a statement. 

Condon added that CLOSE will remain open for all of its current employees until the matter is resolved. 

The closure follows an announcement last week by Credit UnionFirst President Michael Condon that the branch would cease operations immediately, following allegations that it was being used to fraudulently obtain credit card information from individuals who had been previously approved for CLOSE credit cards.CLASE was founded in 2000 and is the largest technology credit card association in the country.

The company’s technology arm operates with more than 70,000 members in 17 states, with branches in more than 35 states. 

Credit Union First says it is in the process of seeking a permanent replacement for CLASE. 

Close declined to comment to ABC News.