Compliance insights from CU PolicyPro and InfoSight: Expelling a member
Published by: Kim Connor
September 6, 2023 | Compliance
Did you know federal credit unions now have the ability to expel a member for cause by a two-thirds vote of the Board of Directors? CU PolicyPro, a complimentary League member benefit, has updated model policy 2232 – Membership Expulsion and/or Service Limitation and created a new corresponding procedure, 2232.10 – FCU Member Expulsion Procedure, to reflect these new standards.
In order to move forward with this option, the credit union has to approve the bylaw amendment (also with a two-thirds vote by the Board of Directors). Once approved and before implementation, the credit union must provide their entire membership with a copy of either Article XIV of its revised bylaws or the optional standard disclosure notice included in the final rule under “Optional Standard Disclosure of Expulsion Policy.”
Once the bylaws have been amended and the membership notified, the credit union need to ensure their policy and procedures are up to date to comply with timeframes for notice requirements, along with rights to a hearing, communication after the expulsion, and associated record retention requirements.
In addition to the updated CU PolicyPro model policy, credit unions can reference the Membership Expulsion and/or Service Limitation topic within the Accounts channel of InfoSight, which has been updated to include the recent changes as well.
If you have questions about accessing these membership benefits, don’t hesitate to connect with VP, of Member Experience Kimberly Connor.
Contact Kim Connor for questions or assistance.