ARLINGTON, Va. — While NAFCU shares the agency's concerns over member access to the courts, NCUA should not re-incorporate its bylaws into regulation at this time.
According to NAFCU's comment letter on the matter, due today and signed by Senior Vice President of Government Affairs Dan Berger, "NAFCU does not agree that federal regulation and oversight of bylaws disputes is appropriate at this time. NAFCU member credit unions have expressed concern that the involvement of the NCUA could result in various unintended consequences." For example, a small group of unhappy members of other antagonists could create undue hardship for the credit union.
Additionally, Berger said NCUA already had the authority to exercise administrative enforcement authorities if a credit union violates the Federal Credit Union Act or NCUA regulation or threatens safety and soundness. "Reincorporating the bylaws will maintain this standard, but would add the ability for the NCUA to intervene when a violation poses a threat to fundamental credit union members' rights.
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"NAFCU members have expressed concern that in the proposed rule the standards for intervention in bylaws disputes when there is no violation of the FCU Act or NCUA regulation or a threat to the safety and soundness of the credit union are unclear and ambiguous."
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