Repo Risk Alert: Is Your Credit Union Client Affected?

Hundreds of Credit Unions Were Hit by the Sharetec Outage. How Many Repo Assignments Have Been Affected?

A nationwide technology outage affecting credit unions has largely been reported as a story about members unable to access online banking, check balances or conduct normal transactions.

For the repossession industry, there may be a much less visible problem: What happened to the repossession assignments that were already out?

The September 15 outage followed a cooling-system failure at a third-party data center supporting Sharetec, according to notices posted by affected credit unions.

Sharetec has not publicly disclosed a complete list or final count of affected institutions. However, Thrive Credit Union reported that more than 280 credit unions were affected, while Badger Globe Credit Union referred to more than 300 affected credit unions. Iberville Federal Credit Union similarly reported being told that more than 300 credit unions were affected.

Those numbers should therefore be understood as figures reported by affected credit unions, not a final count confirmed by Sharetec.

The Hidden Risk: Who Was Affected?

American Banker has independently identified 23 credit unions in 14 states, representing approximately $2.56 billion in assets and 200,000 members, using certified June 2026 NCUA call-report data.

CURepossession’s review of credit-union notices and local reporting has identified additional institutions. If the 280-to-300-plus figures being reported by affected credit unions prove accurate, most of the affected institutions have still not been publicly identified.

For recovery agencies and forwarders, that creates a simple question: Do you know whether one of your credit-union clients was affected?

And if it was, have repo assignments issued before or during the outage been revalidated against reconciled account information?

CURepossession has found no evidence that an affected credit union improperly allowed a repossession to proceed. We also have not found evidence establishing that every affected CU suspended repossessions, outside collections or legal actions.

They may have done exactly that internally. We simply don’t know.

The Account Could Change While the Repo Order Remained Active

The effects of the outage varied considerably among institutions, and credit unions may have handled pending transactions differently. That distinction is important.

But several affected CUs publicly acknowledged circumstances directly relevant to collections.

Mills42 Federal Credit Union said electronic transactions, including payroll direct deposits, were being held for later posting. Its debit-card processor initially had access only to members’ last known balances before the outage. Mills42 also told borrowers that late fees resulting from delayed loan payments would be waived.

City of Firsts Community Federal Credit Union similarly reported that electronic transactions were being held for posting and that ATMs were operating using members’ last known pre-outage balances. After core access returned, the CU cautioned that it could not yet guarantee that all balances and transaction histories were accurate while transactions were posted, validated and discrepancies reconciled.

CAMC Federal Credit Union reported that after receiving limited core access it spent extended hours processing transactions accumulated during the interruption.

Everyone’s Federal Credit Union CEO Court Watson told local media that direct deposits and ACH transactions were going through but were in a “holding pattern.” Everyone’s later refunded overdraft fees associated with the disruption and asked vendors not to impose late fees on members because of the outage.

These examples do not establish that every affected credit union experienced the same transaction-posting problem.

They do establish that, at some institutions, restoring the core did not immediately mean every transaction had been posted and every balance was current.

Now Put a Repo Order into That Timeline

Imagine an auto loan legitimately assigned for repossession before September 15.

The outage begins.

During the outage, the borrower makes a payment or an ACH, payroll deduction or other transaction arrives that could affect the delinquency.

Depending upon the particular CU’s systems and procedures, that activity might not immediately be reflected in the account information available to collections.

Meanwhile, the repossession assignment has already left the credit union.

It may be sitting with a forwarder, recovery agency or field agent who has no visibility into what is happening inside the lender’s core.

All the agent knows is that the assignment remains active.

That does not mean the resulting repossession would automatically be wrongful. Whether a borrower actually cured a default depends upon the contract, amount and timing of the payment, applicable state law and other facts.

But it creates an obvious operational risk.

A payment can eventually be reconciled.

A vehicle already repossessed cannot simply be un-repossessed. You can’t unscramble an egg.

Known Affected Credit Unions

The situation remains fluid. This is not represented as a complete list, and inclusion means only that the institution publicly acknowledged the outage or was specifically identified as affected by credible reporting.

Q2 2026 asset figures shown below are based on NCUA 5300 call-report data where independently matched.

Asset figures are rounded. The table is a developing list, not a representation that these are the only affected Sharetec clients.

The Question Repo Companies Should Be Asking

There is no evidence presently reviewed by CURepossession that any wrongful repossessions have occurred because of this outage. But that isn’t really the warning.

The warning is that hundreds of credit unions reportedly experienced a core-processing interruption, while only a small fraction have been publicly identified.

For recovery agencies and forwarders with credit-union clients, it may therefore be prudent to ask: Was our client affected by the Sharetec outage?

And if the answer is yes:

Have the active repossession assignments issued before or during the outage been revalidated after transaction reconciliation?

No accusation is necessary. No assumption that an assignment is invalid is necessary.

It is simply a recognition that the credit unions themselves have reported delayed transaction posting, pre-outage balances and post-restoration reconciliation.

The cost of asking the question is almost nothing.

The cost of discovering the answer after the vehicle is already on the hook could be considerably higher.

Repo Risk Alert: Is Your Credit Union Client Affected? – Repo Risk Alert: Is Your Credit Union Client Affected? – Repo Risk Alert: Is Your Credit Union Client Affected?

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