Federal modernization necessary for stronger credit union empowerment
Published by: Lianne Simeone
April 20, 2021 | Government Affairs
Having a strong dual charter system fosters safety and soundness innovations and competitive supervisory fees and enables Ohio credit unions to choose which charter is best for long-term growth. That is why the League recently worked to modernize the state charter and is now shifting its focus to updating the Federal Credit Union Act for federally chartered credit unions. With the recent introduction of H.R. 2311, the Credit Union Governance Modernization Act, the League urged the Ohio congressional delegation to support modernizing how federally chartered credit unions expel members placing the institution and membership at risk. While expulsion is a rare occasion, some members may be a threat to the credit union, its staff, and fellow members by engaging in abusive, dangerous, fraudulent, or illegal conduct. Like the recent Ohio state-charter updates, H.R. 2311 would provide a more efficient process that leaves sensitive membership decisions up to a majority vote of the board of directors and includes a robust appeals process for the member-facing expulsion. The League will continue urging for passage of federal legislation, like H.R. 2311, that strengthens the dual charter system through parity, so credit unions everywhere are better empowered to further protect and serve members.
Read the League’s letter to the Ohio congressional delegation and reach out to Chief Advocacy Officer Emily Leite for any questions on federal modernization efforts.
T: (614) 923-9770
C: (614) 581-8460
Contact Emily Leite for questions or assistance.