The American Bankers Association wrote NCUA Chairman Debbie Matz on August 11 about four credit unions that are using a person’s age to qualify the person for credit union membership.
ABA stated in its letter that it is “concerned that, in some cases, membership organizations are being created for the sole purpose of manufacturing an artificial associational bond that will provide cover for an illegal expansion of a credit union’s membership base. That is not consistent with law or precedent.”
ABA pointed out that “age by itself … does not create an affiliation or common interest that is sufficient to support a field of membership at a credit union.”
ABA requested that “NCUA take all appropriate steps … to ensure that organizations or clubs … actually reflect a substantial and genuine affiliation between their members, and are not simply shell organizations designed to facilitate credit union membership.” ABA also asked the agency to explain its rationale for approving such associational bonds based upon age.
The four credit unions identified in the letter are: CP Federal Credit Union, Ascend Federal Credit Union, Security Service Federal Credit Union, and Suncoast Schools Federal Credit Union.
Read the letter.
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