NCUA proposes modernized member expulsion process
Published by: Sean Brown
November 16, 2022 | Regulatory
Credit unions need operational flexibility to meet service demands and challenges, especially when dealing with an abusive member. Although the need to expel a member might be rare, providing federal credit union’s executive staff and board of directors the latitude to make that decision is necessary to ensure the safety and well-being of members and staff alike. This is what the League will influence in the National Credit Union Administration’s (NCUA) proposed member expulsion rules process. The rule proposal is the result of Movement advocacy efforts to pass the Credit Union Governance Modernization Act, which requires NCUA to modernize the federal credit union member expulsion process. The League will continue to support laws and rules that operationally empower credit unions.
If your credit union is interested or has experienced a situation that could have benefitted from a more practical expulsion process, join the League in submitting a comment letter outlining the importance and need for efficient and viable safety tools. All comments are due no later than Dec. 2.
Contact Sean Brown for questions or assistance.