On April 16, 2015, the $674million Self-Help Credit Union left its state league anddisaffiliated from CUNA.

In doing so, Self-Help Credit Union joined its fellow NorthCarolina cooperative, the $29 billion State Employees' CreditUnion, in leaving in protest over CUNA's structure and policies.The Raleigh, N.C.-based SECU left the Carolinas Credit Union Leagueand CUNA in February 2014.

The $593 million Self-Help Federal Credit Union will also leavean associational membership with the California and Nevada CreditUnion Leagues as well as CUNA, according to Self-Help PresidentRandy Chambers.

In an exclusive interview with CU Times, Chamberslamented leaving the state-level leagues, but recounted severalways that CUNA's national policy positions had gradually come torun counter to the credit union's own policy positions,particularly in the area of consumer protection, over the pastdecade.

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

“The bankruptcy reform effort culminated in a bankruptcy bill in2005,” he said. “CUNA backed a bill that resulted in familieshaving a harder time getting back on their feet after a bankruptcy,and that was not our position.”

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.

Finally, CUNA's current, ongoing opposition to the CFPB alsoruns counter to Self-Help's positions.

“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 the CFPB's budgetinstead of it being an independent financial regulator like otherfinancial regulatory agencies – that's not our position,” hesaid.

In its April 16 resignation letter from the league, Self-Helpalso cited CUNA's inability or unwillingness to speak out aboutcredit unions converting to banks and the fact the associationrefused to take a stand against overdraft protection.

“CUNA has not even had the courage to take the easy standagainst overdraft on debit and ATM transactions, which provide noconsumer benefit,” Self-Help wrote.

Responding to a question about whether CUNA's positions might bein line with those of the majority of credit unions, and whetherSelf-Help might not be out of step with the entire industry,Chambers said he was not sure CUNA's national policy positonsnecessarily reflected the stances of the majority of credit unions,particularly those of smaller asset size.

“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.”

Greg Melia, chief member relations officer for the AmericanSociety of Association Executives said trade associationsrepresenting a wide variety of industries face the challenge ofproviding value that will appeal to the widest variety ofmembers.

CUNA's situation may be even more challenging because it has tofind value that will appeal to a financial institution member ofmore than $1 billion and one of less than $100 million.

The $1.2 billion Credit Union of Colorado left the Mountain WestCredit Union Association.

However, unlike Self-Help, Credit Union of Colorado CEO TerryLeis made it clear that the cooperative's dissatisfaction had notbeen with CUNA, but with the local Mountain West Credit Union Association, which represents creditunions in Arizona, Colorado and Wyoming.

“We should be clear that our problem was not with CUNA,” Leissaid. “It had to do with the local association and the valueproposition there.”

“There is no question we are disappointed that Credit Union ofColorado has chosen not to remain members of the Association,” theMWCUA wrote in an email statement. “They are a great credit unionand when we fail to communicate the value of Associationmembership, we lose their voice and work in our cooperativeefforts.  For example, last month, a damaging interchangebill was introduced at the Colorado State Capitol. Our Associationput together a strong grassroots opposition engaging member creditunions. Because of this strong cooperative effort, thebill was overwhelmingly defeated. Affiliation isn't justabout the money to support the Association, it's about creditunions coming together for the good of themovement. Credit Union of Colorado's help and leadershipin these types of efforts is what will be missed. In addition toour work at the legislature, the Association offers trainingprograms, support in compliance, advocacy with regulators, and ourfoundation to assist credit unions in reaching their goals.”

Jeff Carpenter, vice president of member relations for CUNA,acknowledged that a big part of a credit union's dynamic with itsstate league and CUNA hinges on value, but he also observed thatCUNA has not always done a good job of informing credit unionsabout everything it does.

“When I came on after the Great Recession in 2011, there hadbeen a number of credit unions that had cut their participationwith CUNA and their leagues during the downturn,” he said. “Wefound that they often didn't realize all that their leagues andCUNA offered, and when we more fully explained the valueproposition, they came back.”

CUNA does not share the exact number of members it currentlyhas, but Carpenter reported almost 90% of credit unions nationwideare affiliated.

Carpenter acknowledged that CUNA faced a challenge in trying tomeet the needs of such a diverse membership, but said theassociation strives to provide value in three areas: Removingbarriers to offering products and services, creating awareness withconsumers about credit unions, and offering member credit unions arange of excellent products and services.

Dave Adams, who is currently the CEO of the Michigan CreditUnion League and formerly the CEO of leagues in Utah and WashingtonState, agreed that the value proposition is key and noted thatleagues had to listen carefully to members because not all creditunions will make the value calculation in the same way.

He also observed offering a variety of industry-leading productsand services both helped meet credit unions' needs and provided theleague with an income stream that helped keep dues low.

Still, Melia observed that CUNA could make it easier to hold onto member credit unions if it adopted a more flexible membershipapproach.

“The key word of the last five years has been choice,” Meliaexplained. “In much the same way that people individually like tohave choices in how they interact with and join things likeassociations, organizations do too. A flexible membership structurecan help an association engage a wide variety of members with verydifferent needs.”

Melia coild not  comment directly on the controversyover the rule that linked CUNA membership with membership in thestate leagues, noting that he lacked knowledge of the situation.However, he observed that a one-size-fits-all approach tomembership rules had largely lost their appeal amongassociations.

Both Self-Help Credit Union and SECU cited the requirement that theyhad to join CUNA if they wanted to belong to their state league asone reason, among others, that they disaffiliated with CUNA.

CUNA's System Structure and Governance Task Force has beentasked with looking at the question, Carpenter said.