Why did the examiner retaliate? Both men said the male NCUA employee harassed and bullied employees, particularly female employees, to the point where the credit union leaders said they felt their organization was legally liable.

Barr said he contacted the NCUA's supervisory examiner and reported the conduct to her. He said he told the supervisory examiner he didn't want to file a formal complaint, but did request that the regulator send another examiner to complete the exam.

Instead, the supervisory examiner, who neither Barr nor Renz would reveal by name, passed the information along to the NCUA's Office of Inspector General, which opened an investigation. However, the investigation began before Commodore Perry's exam was complete, and the examiner was made aware of the credit union's complaints.

“Not surprisingly, when he finalized the exam and issued the report, we found a lot of things were inaccurate, including scores that were downgraded, which we could see weren't justified,” Barr said, explaining why the credit union accused the examiner of retaliation.

Barr and Renz then submitted an appeal to Yolles in June, stating that they had the documentation to prove the examiner's findings were inaccurate. They received back a letter that denied the appeal, although Yolles did promise to send a different examiner to the credit union for its 2013 exam.

“I was very frustrated, because we were never contacted by the regional office to discuss the facts,” Barr said. “That's shocking, because the entire basis of the appeal is that we can prove the report is untrue. All they did, apparently, was review the examiner's report and come to the same conclusion he did.”

So, on Sept. 9, Barr and Renz submitted an exhaustive, 365-page appeal to the SRC that includes documentation they say proves the exam findings are inaccurate. The two said they also requested to appear in person before the SRC, as is their right, but have not yet received a response from the NCUA.

“This is not a case of a credit union being angry about a bad examination score; this is an extremely clear case of retaliation that clearly demonstrates the problem with the NCUA appellate process,” Renz said.

The credit union leaders have volunteered to serve as the poster children for S. 2160, the Financial Institutions Examination Fairness and Reform Act, which would allow credit unions to appeal exams to an administrative law judge, who would submit his or her findings to the ombudsman of the Federal Financial Institutions Examination Council. NCUA Chairman Debbie Matz is the FFIEC's chairman. 

Renz said the credit union has told Sen. Sherrod Brown (D-Ohio) and Rob Portman (R-Ohio) about their exam appeal efforts and that both have offered their support. In fact, Portman signed on a sponsor of the Exam Fairness Act, Renz said.

As for the NCUA's side of the story, Public Affairs Specialist John Fairbanks said, “We cannot comment on any aspect of any pending appeal.”