The NCUA's Supervisory Review Committee has rejected the 5,000-member, $32 million Commodore Perry Federal Credit Union's appeal of NCUA Regional Director Herb Yolles' decision to uphold the results of the agency's most recent exam.
The move is the latest in an ongoing dispute in which the credit union had alleged the male NCUA examiner retaliated against the credit union by lowering its CAMEL rating after the credit union complained he had sexually harassed female members of the credit union's staff.
The NCUA's Office of Inspector General investigated the credit union's claims but said it could not substantiate them. Nor did the OIG make its report public.
Commodore Perry initially appealed the exam results to the regional level and, after it was rejected there, carried the appeal forward to the SRC. After the SRC rejection, Thomas Renz, president and chief development officer for the Oak Harbor, Ohio, credit union, said the credit union would seek clarification of different points of the rejection and then appeal it further to the NCUA Board of Directors.
And he signaled the credit union is prepared to go farther.
“At this point we have little hope that the board will do the right thing but, in hopes of avoiding a court battle, we will exhaust our agency options first,” Renz said in an e-mail revealing the rejection.
Renz also said points in the rejection were “factually incorrect” and noted that the rejection indicated “how broken the examination and appeals process is and how important it is for our industry to push for change.”
Paul Mercer, president of the Ohio Credit Union League, made a pointed comment about who the NCUA's exam and appeal process appeared designed to serve. He also signaled the League was prepared to seek assistance from Congress.
“The effectiveness of NCUA's exam appeal process is a matter of perspective,” Mercer said in a statement about the rejection. “It functions well if intended to affirm the infallibility of NCUA’s work. For credit unions seeking balance and fairness, the process falls short.
“Undoubtedly, there are greater concerns among credit unions about NCUA – a budget process lacking restraint, prescriptive supervision, undermining of the state system; however, the absence of a meaningful appeal process is a serious vulnerability for all.”
He added, “NCUA’s promotion of the virtues of the current process will not cause change.”
Mercer said the Ohio League will now focus on seeking support for the Financial Institutions Examination Fairness Act (S. 2160/HR. 3431).
{ The story line:
- Nov. 9, 2012 Commodore Perry Appeal Decision Due in 30 Days
- Nov. 2, 2012 NCUA OIG Denies Request for Report
- Oct. 26, 2012 Commodore Perry Appeal Set for Nov. 7
- Oct. 25, 2012 CPFCU Prez, Attorney Say Appeals Process Dodges Real Issue
- Oct. 25, 2012 Appeals Panel Can Toss Commodore Perry Exam Findings
- Oct. 24, 2012 Ohio CU Left Wondering How to Prep for Appeal
- Oct. 11, 2012 NCUA Stands by Examiner in Harassment Appeal
- Oct. 9, 2012 NCUA Buys Time in Commodore Perry Appeal
- Oct. 4, 2012 Commodore Perry FCU Says Documentation Proves Claims
- Oct. 3, 2012 Ohio CU Says NCUA Examiner Harassed, Retaliated }
