In response to a letter from House Financial Services Chairman Jeb Hensarling(R-Texas), NCUA Board Chairman Debbie Matz wrote that the NCUA hasnot and will not participate in Operation Choke point.

“NCUA does not dictate which businesses credit unions can serveas long as these businesses are legal and within the credit union'sfield of membership, and the credit union can serve them safely andsoundly,” she wrote in the letter dated April 15. “Going forward,the NCUA will continue to ensure that all our material and guidanceclearly outline these policies.”

Matz explained that the NCUA issued a memorandum to all fieldstaff in August of 2014, which stated the agency's policy foropening and closing accounts is a decision generally left to thecredit union.

“The decision may be based on a credit union's particularbusiness objectives, its evaluations of the risks associated withoffering particular products or services and its capacity andsystems to effectively manage those risks,” she wrote.

Mike Schuetz, owner of Hawkins Guns LLC in Wisconsin, hasclaimed the $272 million Heritage Credit Union in Madison, Wis.closed his account due to Operation Choke Point. Schuetz recorded aconversation with a branch manager who said the credit union wasbeing pressured by regulators.

“They came in, looked at our books, looked at everything andsaid, 'Here's some accounts we feel like we're going to regulateyou on,' and they kind of put the screws to us on what we could andcouldn't do type thing,” a manager stated in the recording. “We'renot anti-gun as a company but our hands are tied.”

Heritage's CEO Anita Rauch told CU Times the accountwas closed for other reasons.

“Our position all along has been our inability to serve Mike atHawkins Guns was simply a temporary situation,” she said. “It's notreasonable to think you can buy the software, plug it in and itjust works. It takes a little bit of programming.”

Rauch said the credit union's assets grew to $100 million inthree years so the amount of monitoring for cash intense businessesincreased.

“We began working on accommodating cash intense businesses nomatter what the type of business. It wasn't strictly directed atguns or gun shop owners,” she said.