YOKOSUKA NAVAL BASE, Japan — Navy Federal Credit Union began absorbing USA Federal Credit Union operations on Monday in a merger the National Credit Union Administration approved last week.

The merger came after USA Federal, a medium-sized credit union based in San Diego, faced financial hardship after writing off millions in bad loans, according to the financial institution’s quarterly reports.

USA Federal members in the United States can now begin transferring their accounts to Navy Federal if they wish, according to Navy Federal’s Web site.

Navy Federal employees will be available in USA Federal’s San Diego offices beginning Monday to help members make the switch.

Members at USA Federal’s 11 military base branches in South Korea and Japan can begin transferring their accounts in early November, according to the Web site.

For now, direct deposits, accounts, credit cards and loan payments will continue as normal for USA Federal account holders, according to Navy Federal. By late December, however, all USA Federal accounts will be transferred to new Navy Federal accounts and closed, and all USA Federal branches will be fully operating as Navy Federal, according to Navy Federal.

USA Federal members overseas with questions can call Navy Federal collect at 1-703-255-8837.

With about $43 billion in assets and 3.5 million members, Navy Federal Credit Union is by far the United States’ largest credit union, according to National Credit Union Administration data.

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