The members of the $193 million HAR-CO Federal Credit Union have voted to approve the credit union's change to a mutual bank charter, according to an announcement from the CU to its members. The credit union did not returned calls seeking comment on the vote.
If the roughly 73,000 members of Technology Credit Union, a $1.5 billion institution headquartered in San Jose, Calif., vote to convert to a mutual bank charter, they will likely find their increased expenses not restricted to taxes alone, according to CUNA Chief Economist Bill Hampel.
Maryland credit union's membership approves charter change.
Technology CU members will determine what they want in their CU's future; Bank of America has fiduciary duty to recoup interchange losses.
The board of directors of $1.5 billion Technology Credit Union has written the CU's 74,000 members that they may be better served by converting the credit union to a bank.
When Technology Credit Union posted its announcement that it was exploring a conversion to a mutual savings bank, CUNA and the California Credit Union League made some noise. CUNA CEO Bill Cheney said his organization feels credit unions are the best providers of service to consumers.
California Department of Financial Institution regulations are silent on credit union conversions to mutual savings banks.
California league, CUNA CEO's express misgivings about Tech CU proposed conversion to bank.
The $188 million Har-Co Federal Credit Union may take the next step toward changing to a mutual bank charter this evening.
In what has become a rare occurrence, a federal credit union in Maryland has taken the what many see as the first step in the process to change to a mutual bank charter.