Cliff Rosenthal, National Federation of Community Development Credit Unions president/CEO, highlighted the liquidation of Kappa Alpha Psi FCU in a request for credit unions to take a stand against overaggressive examiners.
"The federation does not have access to the credit union's records, nor NCUA's examination documents, so it is difficult for us to evaluate the facts and merits of the case, but it is important for credit unions who feel that they have been mistreated by their regulators to use all means available, ultimately including the courts, to assert their legal rights and argue their case publicly," Rosenthal said in a letter to his member credit unions.
Kappa Alpha Psi FCU challenged the NCUA's liquidation. The NCUA had until noon today to explain the liquidation to the U.S. District Court for the District of Columbia. The credit union also has until Aug. 16 to produce an argument as to why the court does have the authority to stop the liquidation.
"The federation receives a steady stream of complaints from our member CDCUs about examiners acting overly aggressively or inappropriately. The reality is that almost no credit unions are willing to take their cases public, because they fear retaliation from their examiners-an obviously unacceptable situation. Kappa Alpha Psi has taken an important step in breaching the wall of silence," Rosenthal said.