Almost fifty credit unions are allowing anyone to join them through the American Consumer Council (ACC).
These credit unions have partnered with ACC for the express purpose of qualifying individuals, who otherwise are ineligible, for credit union membership. In fact, some credit unions blatantly advertise on their websites that if you are not eligible to join through any of the listed groups or affiliates, you can join through ACC.
It appears that ACC was added to these credit unions’ fields of membership via the associational common bond. However, on ACC's website, it states that “if your intention is to join one of our participating credit unions, or if you are already a member of a credit union, you can join for free! (emphasis added)”
While ACC is an association, the absence of dues seems to make it more difficult for the associational common bond requirement to be satisfied.
Membership in ACC needs to be more than the checking of a box on a credit union’s membership application. There needs to be a meaningful affinity and bond among ACC members so as to satisfy the associational common bond requirements.
This is just another instance of permissive credit union regulators permitting some credit unions to stray from their charter.
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Your recent Blog, which referenced the American Consumer Council (ACC), has several errors and inaccuracies that need to be corrected. For the record, the American Consumer Council is a non-profit consumer education organization with over 140,000 members nationwide. Our focus is consumer advocacy, financial education and corporate social responsibility. Our "common bond" is very clearly stated in our bylaws and literature.
ReplyDeleteFor you to suggest that consumer-members of ACC should not be eligible to join a credit union is arrogant and discriminatory. It smacks of the typical “Big Bank” gobbledygook that is offensive and condescending to most American consumers. And, let’s be candid here, it’s the reason why so many banks are reviled by consumers.
It’s ludicrous for you to suggest that because a credit union enrolls members of the American Consumer Council that they are somehow “straying from their charter.” Every credit union is strictly regulated by the NCUA or its state regulators. We have found that the men and women of the NCUA are dedicated, competent people who follow the letter of the law. This is why ACC must adhere to the same guidelines that every other Select Employer Group (SEG) complies with when we put forward a request to the NCUA to have a credit union represent or enroll our members.
While your position at the ABA does give you a platform to espouse your views towards credit unions, it doesn’t give you the right to misrepresent the facts. Nor, should it give credence to your lop-sided idea that consumers should be denied the right to choose their financial relationships; or, have the right to become members of credit unions; or, suggest that credit unions not be able to legally partner with organizations like the American Consumer Council, whose mission is to help our consumer-members obtain the financial services they need to live their dreams.
Thomas Hinton, President & CEO, American Consumer Council www.americanconsumercouncil.org
Thomas:
ReplyDeleteI am not opposed to ACC members joining a credit union. However, I believe individuals should belong to ACC before joining a credit union that has partnered with ACC. It is hard to see how simultaneously joining an association to become a member of a credit union constitutes a meaningful affinity and bond among members of an association.
Dr. Leggett, thanks for your comments and response.
ReplyDeleteTo the best of my knowledge, a credit union cannot enroll someone under the ACC SEG unless that person is already a member of our organization. Once an individual joins ACC, they are encouraged to become a member of a credit union if they so choose since this is one of the benefits of membership we offer. As far as I know, every credit union that participates in our program, adheres to the same standards and membership criteria. Sincerely,
Thomas Hinton, American Consumer Council.
Tom Hinton you're full of crap. The ACC is nothing more than a way for large credit unions to act like the banks that they profess to fight against and keep the actual small community credit unions down.
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