The $71 million Rutgers Federal Credit Union, which serves employees and staff of the New Jersey university as well as two hospitals, said Monday it remains open to a merger with a smaller unaffiliated nearby CU, locked in a bitter member/board dispute.
The suit described as a whistleblower's complaint seeks to block any merger with RFCU on grounds certain directors stand to gain financial advantage from the transaction and that a consolidation would hurt members.
There were media reports this week that a settlement might be near on the class action suit filed Oct. 7 in a Middlesex County court but Howard Elkin, president/CEO of Rutgers FCU said he could not comment.
Elkin said a consolidation, which has been discussed for months, "would be a natural fit for the student/alumni credit union since we could offer a wider platform of products and services." Moreover, he said, "these are two credit unions that are three blocks apart" and serve a similar member base.
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