About a month later, Nussle acknowledged the credit union system did not respond well to the CUNA board's decision to maintain the dual membership requirement.

He informed the CUNA board that he directed his management team to draft new bylaws to modernize the trade association's membership structure, according to a summary document of the CUNA board's Oct. 20 meeting obtained by CU Times.

“He believes there's a need to take a step back and re-evaluate the board's decision on membership choice,” the summary document read. “To that end, CUNA management will be drafting new CUNA bylaws to modernize its membership structure. As part of the process, he plans to reconsider the CUNA Structure and Governance Task Force recommendations. He plans to bring revised bylaws back to the CUNA board for discussion and consideration at its December board meeting.”

This news naturally won support from choice backers, as well as from one CEO whose league favors the dual membership requirement. Most league CEOs who publicly supported the dual membership requirement did not respond to CU Times' requests for comment about the board's reconsideration.

Though no one really knows what action the CUNA board will take this month, some credit union leaders agree that the board needs to make a final decision and move forward from one of the industry's most emotional controversies.

Tom Dorety, president/CEO for the $6.6 billion Suncoast Credit Union in Tampa, Fla., who chaired the CUNA task force, said he was encouraged by the CUNA board's reconsideration and hopes its final decision will help CUNA and the leagues get past the controversy and move forward.

“I know I'm the one who led that discussion, but it really is about moving forward and having an effective trade association, and we've got to get on with that,” Dorety said. “I'm optimistic that is where we are going with this, and I fully support this move that both Jim and the CUNA board have made. I just hope at the end of the day they will come up with a way of moving forward here. I am pretty confident that they will.”

Emotions in response to the issue have run high. For example, California and Nevada Credit Union Leagues President/CEO Diana Dykstra felt compelled during her REACH conference speech to apologize to credit union members. She assured members the league was not ignoring them because “it is loud and clear our credit unions want change.”

“So I apologize if my communication before today wasn't clear,” Dykstra said. “I promise you the communications will be better going forward. It just happened in the middle of September. The CUNA board just met again in October, and I knew it was fluid and I didn't have much more information than any of you have because I don't sit on the CUNA board.”

She added, “But the communication will improve, and I appreciate and hope that you all will give us the opportunity to get it right. And let's not break our system apart today over something that you think we should have done several years ago and we haven't had the opportunity to work on yet.”

Moreover, before hinting he would ask the CUNA board to reconsider the dual membership requirement, Nussle directed criticism toward some credit union leaders during his REACH conference speech.

“Some people, rather than blaming execution, rather than focusing on leadership, rather than focusing on being bold and setting positive agendas, focused on blaming the structure for some of our frustrations,” Nussle said. “Yes, the structure needs to be retooled and modernized. And come this December, even though the board has made a decision, I am going to be promoting to them a whole new modern structure for not only CUNA, but going forward in partnership in interdependence with our leagues so that we can serve you even better into the future.”

Dave Adams, president/CEO of the Michigan Credit Union League, said Nussle and the board's decision to reconsider was a sign of good leadership. The Michigan league was the first trade association to offer its members choice, rejecting CUNA's decision to keep dual membership.

“I think that it's good leadership on the part of CUNA to be perceptive to what's happening and to reconsider its decision,” Adams said. “I hope that the board will see the wisdom in enabling direct membership with CUNA at its December board meeting.”

In addition to the Michigan league, the boards of directors for the League of Southeastern Credit Unions, the Ohio Credit Union League and the Carolinas Credit Union League voted to allow their credit union members to join their state trade organizations without requiring them to join CUNA in 2016.

The New York Credit Union Association asked CUNA to reconsider its dual membership requirement. Nearly 80% of credit unions in the Empire State favor choice, according to an association survey of its members. The Georgia Credit Union League also plans to review the dual membership issue.

What's more, CUNA's national survey found that 42% of CUNA members favored choosing CUNA and/or league membership separately. Large credit unions (59%) favored membership choice at twice the rate of small credit unions (31%).

Adams acknowledged there will be some Michigan credit unions that will drop their CUNA membership next year.

“If we lose a few credit unions from CUNA in Michigan and in other states where dues optionality is allowed, what it does is that it creates accountability so that CUNA and state leagues both have to be responsive and stand on their own,” Adams explained. “If there are issues on dues formula or positions on policies or advocacy results, then both the state and national association will hear about that from the membership, and they can make adjustments to get those credit unions back. I think it is actually a positive thing to achieve accountability so that both organizations can continue to improve how they approach getting results for the memberships.”

The Michigan league and other trade associations that allow choice said they will strongly encourage their credit unions to continue their membership with CUNA.

Jeff Olson, president/CEO of the Dakotas Credit Union Association, said he wasn't surprised about the CUNA board's move to reconsider the dual membership requirement.

Although Olson said the Dakotas association supports dual membership, he believes dual membership and membership choice can co-exist.

“I think if there are state leagues that think to strengthen their organization they need to have dues optionality, then they should have that option,” he said. “I think the dual membership requirement and the membership optionality can co-exist. What that may look like, I have no idea. But I think we can come up with a formula that can work for everybody.”

Dick Ensweiler, president/CEO of the nation's largest state trade association, the Cornerstone Credit Union League, declined to comment about CUNA's reconsideration of the dual membership requirement.

“It is premature to speculate on what Jim Nussle is planning for CUNA,” he said. “I do not want to be in a position to encourage or discourage open discussion on whatever he believes is appropriate. I have upmost confidence in Jim and the CUNA board doing what is right for the credit union system.”

Ensweiler said after reviewing why the CUNA board voted to reject the task force's recommendations, the Cornerstone league board discussed it and took no action to move away from its long-standing posture, which supports a strong CUNA/league partnership.

In addition to Cornerstone and the Dakotas league, other state trade associations that have publicly supported maintaining CUNA's dual membership requirement include the Wisconsin Credit Union League, the Mountain West Credit Union Association, the Northwest Credit Union Association, the Maine Credit Union League and the Credit Union Association of New Mexico.