The $674 million Self-Help Credit Union notified the Carolinas Credit UnionLeague that it is disaffiliating from the league and leavingCUNA.

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The $593 million Self-Help Federal Credit Union, will also leave anassociational membership with the California and Nevada CreditUnion Leagues and will also leave CUNA, according to Self-HelpPresident, Randy Chambers.

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In an exclusive interview with CU Times, Chamberslamented leaving the state level leagues but recounted several waysthat CUNA's national policy positions had gradually come to runcounter to the credit union's own policy positions, particularly inthe area of consumer protection over the past decade.

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“I think it's been coming for a few years,” Chambers said,recalling a policy fight that many credit unions consideredfinished in 2005.

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“The bankruptcy reform effort that culminated in the bankruptcybill in 2005,” Chambers said. “CUNA backed a bill that resulted infamilies having a harder time getting back on their feet after abankruptcy and that was not our position.”

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He also pointed to another bankruptcy related fight, CUNA'sopposition to a 2009 proposal that would have allowed judicialmodifications of mortgage principals when millions of Americanfamilies faced losing their homes to foreclosure.

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Finally, the association's current, ongoing, opposition to theCFPB also runs counter to Self-Help's positions.

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“We all have to live within regulations and deal with theirimpacts, Self-Help included, and we definitely see the benefit ofworking with the agency to improve regulations, but the positionthat Congress should have the ability to approve CFPB's budgetinstead of it being an independent financial regulator like otherfinancial regulatory agencies, that's not our position.”

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Responding to a question about whether CUNA's positions might bethose of the majority of credit unions and whether Self-Help mightnot be out of step with the entire industry, Chambers said he wasnot sure CUNA's national policy positons necessarily reflected thestances of the majority of credit unions, particularly those ofsmaller asset size.

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“When you are coming in every day and focusing on serving yourmembers and just the day to day business of running a credit union,you may not have the time to make your voice heard on policydebates,” Chambers said. “That doesn't mean you necessarily endorsewhat CUNA decides to do.”

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He also said the cooperative felt a good deal of regret over themove.

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“We have been a lifelong member of CUNA and our state levelleague,” Chambers said, “both the North Carolina league and the newmerged Carolinas Credit Union League. We think the state levelleagues represent credit unions at their best, helping each otherin a cooperative way.”

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He said Self-Help regularly consulted the Carolinas League oncompliance questions and that Self-Help provided back officesupport to a smaller credit union as it grew as well as a boardmember for the $151 million Latino Community Credit Union. Bothefforts would continue, Chambers said.

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Chambers recounted a story in which a junior executive of asmaller North Carolina credit union had been left in charge whenthe manager had to leave on a medical emergency and then neverreturned. The manager had called the league in a panic, suddenlythrust into responsibilities for which she had received notraining. The league CEO had taken four days to come intothat credit union and train the executive on the things she had notknown how to do.

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“That's credit union's at their best,” Chambers said.

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He added that Self-Help would have wanted to remain in theCarolinas League, but that the rules clearly state that if youaffiliate with a state-level league, you have to affiliate withCUNA too.

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“We disagree with the way CUNA holds state league affiliationhostage as well,” Chambers added.

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All together, Chambers said Self-Help CU and Self Help FCU payaround $50,000 in dues to CUNA and the state leagues in NorthCarolina, California and Illinois, where Self Help FCU has a branchin Chicago. Chambers said Self-Help would make a non-memberdonation to the Carolinas League to support technical assistance tosmall credit unions and that it was investigating making similardonations in California and Illinois.