On April 16, 2015, the $674 million Self-Help Credit Union left its state league and disaffiliated from CUNA.

In doing so, Self-Help Credit Union joined its fellow North Carolina cooperative, the $29 billion State Employees' Credit Union, in leaving in protest over CUNA's structure and policies. The Raleigh, N.C.-based SECU left the Carolinas Credit Union League and CUNA in February 2014.

The $593 million Self-Help Federal Credit Union will also leave an associational membership with the California and Nevada Credit Union Leagues as well as CUNA, according to Self-Help President Randy Chambers.

In an exclusive interview with CU Times, Chambers lamented leaving the state-level leagues, but recounted several ways that CUNA's national policy positions had gradually come to run counter to the credit union's own policy positions, particularly in the area of consumer protection, over the past decade.

“I think it's been coming for a few years,” Chambers said, recalling a policy fight that many credit unions considered finished in 2005.

“The bankruptcy reform effort culminated in a bankruptcy bill in 2005,” he said. “CUNA backed a bill that resulted in families having a harder time getting back on their feet after a bankruptcy, and that was not our position.”

He also pointed to another bankruptcy-related fight: CUNA's opposition to a 2009 proposal that would have allowed judicial modifications of mortgage principals when millions of American families faced losing their homes to foreclosure.

Finally, CUNA's current, ongoing opposition to the CFPB also runs counter to Self-Help's positions.

“We all have to live within regulations and deal with their impacts, Self-Help included, and we definitely see the benefit of working with the agency to improve regulations, but the position that Congress should have the ability to approve the CFPB's budget instead of it being an independent financial regulator like other financial regulatory agencies – that's not our position,” he said.

In its April 16 resignation letter from the league, Self-Help also cited CUNA's inability or unwillingness to speak out about credit unions converting to banks and the fact the association refused to take a stand against overdraft protection.

“CUNA has not even had the courage to take the easy stand against overdraft on debit and ATM transactions, which provide no consumer benefit,” Self-Help wrote.

Responding to a question about whether CUNA's positions might be in line with those of the majority of credit unions, and whether Self-Help might not be out of step with the entire industry, Chambers said he was not sure CUNA's national policy positons necessarily reflected the stances of the majority of credit unions, particularly those of smaller asset size.

“When you are coming in every day and focusing on serving your members and just the day-to-day business of running a credit union, you may not have the time to make your voice heard on policy debates,” Chambers said. “That doesn't mean you necessarily endorse what CUNA decides to do.”

Greg Melia, chief member relations officer for the American Society of Association Executives said trade associations representing a wide variety of industries face the challenge of providing value that will appeal to the widest variety of members.

CUNA's situation may be even more challenging because it has to find value that will appeal to a financial institution member of more than $1 billion and one of less than $100 million.

The $1.2 billion Credit Union of Colorado left the Mountain West Credit Union Association.

However, unlike Self-Help, Credit Union of Colorado CEO Terry Leis made it clear that the cooperative's dissatisfaction had not been with CUNA, but with the local Mountain West Credit Union Association, which represents credit unions in Arizona, Colorado and Wyoming.

“We should be clear that our problem was not with CUNA,” Leis said. “It had to do with the local association and the value proposition there.”

“There is no question we are disappointed that Credit Union of Colorado has chosen not to remain members of the Association,” the MWCUA wrote in an email statement. “They are a great credit union and when we fail to communicate the value of Association membership, we lose their voice and work in our cooperative efforts.  For example, last month, a damaging interchange bill was introduced at the Colorado State Capitol. Our Association put together a strong grassroots opposition engaging member credit unions. Because of this strong cooperative effort, the bill was overwhelmingly defeated. Affiliation isn't just about the money to support the Association, it's about credit unions coming together for the good of the movement. Credit Union of Colorado's help and leadership in these types of efforts is what will be missed. In addition to our work at the legislature, the Association offers training programs, support in compliance, advocacy with regulators, and our foundation to assist credit unions in reaching their goals.”

Jeff Carpenter, vice president of member relations for CUNA, acknowledged that a big part of a credit union's dynamic with its state league and CUNA hinges on value, but he also observed that CUNA has not always done a good job of informing credit unions about everything it does.

“When I came on after the Great Recession in 2011, there had been a number of credit unions that had cut their participation with CUNA and their leagues during the downturn,” he said. “We found that they often didn't realize all that their leagues and CUNA offered, and when we more fully explained the value proposition, they came back.”

CUNA does not share the exact number of members it currently has, but Carpenter reported almost 90% of credit unions nationwide are affiliated.

Carpenter acknowledged that CUNA faced a challenge in trying to meet the needs of such a diverse membership, but said the association strives to provide value in three areas: Removing barriers to offering products and services, creating awareness with consumers about credit unions, and offering member credit unions a range of excellent products and services.

Dave Adams, who is currently the CEO of the Michigan Credit Union League and formerly the CEO of leagues in Utah and Washington State, agreed that the value proposition is key and noted that leagues had to listen carefully to members because not all credit unions will make the value calculation in the same way.

He also observed offering a variety of industry-leading products and services both helped meet credit unions' needs and provided the league with an income stream that helped keep dues low.

Still, Melia observed that CUNA could make it easier to hold on to member credit unions if it adopted a more flexible membership approach.

“The key word of the last five years has been choice,” Melia explained. “In much the same way that people individually like to have choices in how they interact with and join things like associations, organizations do too. A flexible membership structure can help an association engage a wide variety of members with very different needs.”

Melia coild not  comment directly on the controversy over the rule that linked CUNA membership with membership in the state leagues, noting that he lacked knowledge of the situation. However, he observed that a one-size-fits-all approach to membership rules had largely lost their appeal among associations.

Both Self-Help Credit Union and SECU cited the requirement that they had to join CUNA if they wanted to belong to their state league as one reason, among others, that they disaffiliated with CUNA.

CUNA's System Structure and Governance Task Force has been tasked with looking at the question, Carpenter said.