EL SEGUNDO, Calif. — Continental Federal Credit Union is applauding NCUA's statement sent earlier today deeming the $200 payments that Wings Financial Federal Credit Union is offering "impermissible" under the Federal Credit Union Act.
"In affirming that a per capita payment offer is illegal, the NCUA has put a stop to this unprecedented, misleading and unlawful campaign that showed such callous disregard not only for Continental FCU, our Board of Directors and our members, but also for our entire credit union system, its principles and codes of conduct," said Tom Glatt, president/CEO of Continental.
Last week, attorneys for Continental sent a cease and desist letter to Wings Financial asking the financial institution to put an immediate stop to all campaign activities towards Continental's members including shutting down its continentalwings.com Web site. Wings Financial responded that at the time it will continue the campaign, which has included newspaper ads and a petition.
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NCUA said the FCU Act does not allow per capita dividend payments, and that no other legal authority exists for a FCU to make payments such as what Wings Financial is offering.
"In its action, the NCUA has removed a direct threat to the member-owners of Continental FCU, who very much opposed this blatant attempt to steal their credit union," Glatt said.
Wings Financial was not immediately available for a comment on NCUA's statement.
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