Campus Credit Union Council calls for change in FOM proposal

WASHINGTON - The Campus Credit Union Council is requesting that NCUA reconsider a field-of-membership proposal that could have unknown long-term impact on credit unions that serve colleges and universities. The proposed rule states that credit unions could not simply add alumni of a certain college based solely on the fact that they were alumni of that particular institution. The credit union would only be allowed to add people who belong to the respective alumni association. At issue, is whether graduating from an institution constitutes a common bond. "Though many of the proposed changes in the NCUA Field of Membership proposed rules are very favorable to student groups, we hope to work with NCUA to change the requirement regarding alumni groups," said CCUC Executive Director Bradford Caldwell. "The proposed rule would cause a lot of hardship for many credit unions who currently are able to serve all alumni of certain colleges and universities. Many alumni associations across the United States have different requirements for membership in their associations. This would cause an unlevel playing field for different credit unions." Caldwell said he is certain the NCUA alumni association restriction is not intentional and that the bulk of the proposal is good as it streamlines a great deal. According to Caldwell the proposed rule on alumni eligibility is unnecessary because of the diversity of alumni association membership, where some graduates are instantly enrolled, yet other institutions require dues. In conducting research among some of its members, CCUC has found a wide range of situations regarding alumni and their relation to their alumni association that may arise from the proposed rule. The CCUC has also received several letters from concerned credit unions stating that the proposed rule would have a negative impact on them. The deadline to address proposal issues and concerns is August 14. -mbourjolly@cutimes.com