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NCUA, NAFCU Wrangle Over Operating Fee 'Fairness'

Upon NCUA's announcement of a 9.85% hike in the federal credit union operating fees at the recent November board meeting, NAFCU pointed out that the figure only accounts for the average credit union. The fees could range from 9.85% for a federal credit union with $1 million in assets to...

By Sarah Snell Cooke | Updated on December 18, 2007

ALEXANDRIA, Va.–Upon NCUA’s announcement of a 9.85% hike in the federal credit union operating fees at the recent November board meeting, NAFCU pointed out that the figure only accounts for the average credit union. The fees could range from 9.85% for a federal credit union with $1 million in assets to 14.18% for a federal credit union with $1 billion in assets before taking asset growth into account, NAFCU asserted.

Tun Wai, NAFCU chief economist. said the fastest growing and largest credit unions would face a significant increase in their operating fees, particularly those over $10 billion in assets. There are only two federal credit unions of that size: $31.5 billion Navy Federal Credit Union and $10.5 billion Pentagon Federal Credit Union, according to NCUA’s third quarter Call Reports. Federal credit unions fund NCUA’s operating fee. “Fairness is something to be achieved and this raises the question of fairness,” Wai said.

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