NCUA Boardroom. (Photo: NCUA) NCUA Boardroom. Credit/NCUA

In a 3-0 vote, NCUA board members approved the agency’s final rule on member expulsion Thursday, which officially amends the federal credit union bylaws allowing credit union leaders to oust a member for cause by a two-thirds vote by a credit union’s board of directors.

NCUA Board Chair Todd Harper said, “The final rule we are considering today strikes a balance between addressing the legitimate concerns over providing services to violent and disruptive members and providing due process rights to credit union member-owners. These rights include proper disclosures, hearings and an appeals process. The powers granted in the Credit Union Governance Modernization Act must not be used as a tool to facilitate financial exclusion. What’s more, a federal credit union must ensure its implementation of the authority to expel members for cause is consistent and does not violate anti-discrimination laws or regulations.”

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Michael Ogden

Editor-in-Chief for CU Times. To connect, email at [email protected].

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