Updates to Federal Credit Union Act Introduced in Both Houses
Officials believe these updates "will help protect credit unions and their members from abusive, fraudulent and criminal activity."
Lawmakers appear to have taken advantage of having more than 5,000 credit union officials in Washington, D.C., to introduce legislation that would update the Federal Credit Union Act.
Credit union trade groups expressed support for the measures, which were unveiled the same week that CUNA held its Governmental Affairs Conference.
Sens. Tina Smith (D-Minn.) and Ben Sasse (R-Neb.) introduced S. 3323, which would allow credit unions to expel a member for just cause and not require a vote by the full membership.
Smith said that in 2018, the Minnesota legislature enacted similar legislation for state-chartered credit unions.
“For too long, Minnesota credit unions have had to endure members who rob them, harass employees, or destroy credit union property,” Smith said.
“Right now, if an unruly credit union member makes trouble for tellers or other members, the credit union has to go through a lot of rigmarole to expel them,” Sasse said.
“NAFCU strongly supports the Credit Union Governance Modernization Act of 2020 as it will help protect credit unions and their members from abusive, fraudulent and criminal activity,” NAFCU President/CEO B. Dan Berger said in endorsing the legislation.
In addition, North Carolina’s two Republican senators, Thom Tillis and Richard Burr, have introduced S. 3326, which they said removes outdated duties for credit union boards from the Federal Credit Union Act, including the requirement that institutions provide the NCUA with names of their loan officers.
In the House, Reps. Katie Porter (D-Calif.) and Mark Amodei (R-Nev.) introduced H.R. 5981, which would modify federal law to allow credit unions to meet six times a year rather than 12 times a year, as the law now specifies.
CUNA endorsed the legislative efforts.
“CUNA and the [state leagues] have been working directly with legislators throughout this Congress, and particularly during CUNA GAC, to emphasize why Main Street communities need these changes and look forward to working with other members of Congress to move these bills forward,” CUNA President/CEO Jim Nussle said.