NCUA Examiner Accused of Misconduct by Ohio CU
Commodore Perry Federal Credit Union of Oak Harbor, Ohio, is awaiting a ruling from the NCUA’s Supervisory Review Committee regarding an exam appeal that alleges that an NCUA examiner harassed employees and retaliated against the credit union after it complained. The appeal is only the fifth heard by the committee in the past decade. None of the previous four were ruled in favor of the credit union.
The $32 million Commodore Perry FCU elevated its exam appeal after it was denied by Regional Director Herb Yolles in August. Thomas Renz, the credit union’s president and chief development officer, and CEO Mike Barr said the male examiner harassed and bullied employees, particularly female employees, to the point where the credit union leaders said they worried their organization was legally liable.
Documents provided to Credit Union Times reveal the examiner accused the credit union of not detailing a cost-benefit analysis of existing products, services and facilities; not reconciling bank accounts, particularly before a planned system conversion; and paying more, not less, for outside professional services as a result of the conversion. The credit union also provided documentation that it said proved it did, in fact, complete the due diligence in question.
On Aug. 27, Commodore Perry FCU sent a second letter to the NCUA, detailing five exam issues experienced by many credit unions, including the NCUA’s presumption that examiners’ findings are correct and the resources required to appeal exam findings. The credit union further asked to meet with the NCUA to discuss how it might improve the process. In a letter to Sen. Sherrod Brown (D-Ohio), Renz said the response letter from NCUA said “the appeals process is good enough.”