You’re probably thinking what’s the big deal.
To expel a member, credit unions have to hold special meetings, where two-thirds of the members present must vote for the expulsion. The special meeting is usually announced in a newsletter or on the credit union's website.
For example, Towers FCU on its website announced that a special meeting will be held immediately after its annual meeting May 24.
Some credit unions actually publish the members' names to be expelled.
For example, an online May/June 2010 newsletter of $2.6 billion Visions FCU (NY) contained a list of members that had caused a loss of $250 or more to the credit union, since January 1, 1994. These members were going to be expelled in special meeting on June 16. (see images below)
Anybody can view the list whether you belong to the credit union or not.
Consumers need to know this is one of the downsides associated with joining a credit union. If you cause a loss to the credit union, the credit union may publicly shame you.
So before joining a credit union, you should ask to see the credit union by-laws on whether the credit union has a policy about expulsion and whether the credit union publishes the names of people to be expelled.
Considering participation in credit unions is voluntary, all the member had to do was close the account. These are folks that caused a loss and still want to do business with the cu. Also, as cu's are member owned, the only way to "remove" them is to follow the bylaws. I see this a preferable to the bank method of summarily closing your account with no recourse. BTW... if the members don't vote them out... they get to keep their account... So, yes members need to know how they are better protected at a cu over a bank. We relish the difference.... even if it's a little quirky!
ReplyDeleteUnlike banks, too-credit unions often try to work with members to resolve a situation with the member. Expulsion is usually a last resort.
ReplyDelete