Credit Union Under Federal Oversight
The National Credit Union Administration (NCUA) has placed People Trust Community Federal Credit Union under conservatorship, pointing to “unsafe and unhealthy practices.”
LITTLE ROCK, AR — In a statement released on January 16, 2026, the NCUA indicated that member services will continue while they address the identified issues impacting the institution.
Reports, such as one from Arkansas Business, cite various concerns that led to this conservatorship: issues with record-keeping, questionable lending practices, internal inadequacies, failure to report suspicious activities, and insufficient capital.
People Trust Community Federal Credit Union is a nonprofit aiming to support community development, based in North Little Rock.
The credit union’s founder and former CEO, Arlo Washington, shared a video online where he disputed the NCUA’s claims.
Washington stated, “People Trust was established to serve families, small businesses, and individuals striving for stability and opportunity. This moment doesn’t erase that mission or the relationships we’ve formed in the community.”
Furthermore, Washington claimed in a federal court filing that the issues faced by the credit union were due to failures from vendors rather than any mismanagement on their part. He requested that the conservatorship remain in place.
Washington also recognized that they are collaborating with the NCUA and Arkansas Federal Credit Union to ensure member protection.
Currently, People Trust Community Federal Credit Union has around 1,796 members and assets totaling $3.28 million, as per the NCUA’s release. Members are receiving service through the Arkansas Federal Credit Union on Cantrell Road in Little Rock.
Back in 2022, Washington’s journey to founding the credit union was featured in a documentary titled “The Barber of Little Rock,” which was nominated for an Academy Award.
This short documentary, highlighting social disparities, received an Oscar nomination in 2024.
As the only black-owned credit union in Arkansas, it is now under federal oversight with no clear timeline on how long this situation might last.
Since January 16, 2026, the credit union has been operating under this conservatorship.
Having opened in 2022, it primarily targets underserved communities in the state. Washington, who gained some recognition from the Academy Award-nominated documentary, is now working to push back against this oversight.
He expressed that the credit union had not received prior notice regarding the conservatorship hearing.
Court documents are seeking relief from the conservatorship, with the credit union stating that the core issue didn’t stem from internal management but from vendor-related challenges.
Washington noted, “As of 3 p.m. on January 16, People Trust Community Federal Credit Union has entered conservatorship.”
The conservatorship was formally enacted on January 16, as detailed in court documents. Washington provided further explanation in a video on Facebook.
“This is an administrative action and does not reflect our community’s values or the intent behind our organization,” he remarked.
Additionally, Washington raised concerns about the conservatorship being established without proper notice or an opportunity for the credit union to present its case. He clarified that the issues leading to the conservatorship were vendor-related rather than internal failures.
“We’re working closely with the National Credit Union Administration and Arkansas Federal Credit Union to safeguard our members and guide them through this process,” Washington affirmed.
Arkansas Federal Credit Union is currently serving the members of People Trust Community Credit Union.
Importantly, no evidence of fraud, embezzlement, or gross negligence has surfaced in the reports concerning the credit union.
