CCUL Approves Position Statement on CU Charter Conversions

RANCHO CUCAMONGA, Calif. – The California Credit Union League's Assembly of Delegates approved a position statement on Sept. 8 concerning credit union charter conversions that emphasizes the value of the credit union charter as being "the charter of choice for providing the public with consumer-friendly financial products and services." The position statement also "stresses that conversions should be approached from the point of view of the members and remain an alternative, especially should the situation change regarding the future relative benefits of a credit union charter compared to other charters." CCUL President/CEO David Chatfield said, "It is important for the League to have a position that encourages full disclosure to members and preservation of member interests during conversion considerations, maximizes the value of the credit union charter, and maintains the option for credit unions to convert for business reasons. We have clear evidence that banker organizations intend to gradually weaken and absorb the credit union system through their stated `containment and conversion' strategy – to box credit unions in, limit their ability to serve their members, and create an environment that encourages more credit unions to convert over time to bank charters. So, leagues and CUNA should do all they can to resist these efforts to dismantle the credit union system while preserving credit union options."