The credit union's website says:
“Is it easy to join the Credit Union?”Stating that if you’re reading this, you can join SEC FCU indicates this credit union is open to anyone.
“If you’re reading this, you can join SCE FCU. You only need $15 to open your account ─ $5 goes into your savings and secures your ownership in the Credit Union, and the remaining $10 is a tax-deductible donation to our non-profit SCE FCU Foundation.”
This appears to violate the spirit of a letter that NCUA sent federal credit unions in September regarding impermissible common bond advertisement. NCUA wrote: “If your credit union is advertising that anyone, without limitation, is able to become a member of your credit union, then you may be in violation of federal law and regulation.”
Moreover, a $10 tax-deductible donation to the credit union’s foundation does not meet the requirement of having a common bond.
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I get a Southern CA Edison bill to my home - might that relationship qualify me for membership? Can my movie ticket stub qualify me to join First Entertainment Credit Union? I got a parking ticket, does that qualify me to join Courts & Records CU?
ReplyDeleteYou must be an old-timer like me if you're still referring to Courts & Records, but it was a very funny comment. As a 30-year CU veteran, I actually agree with Leggett on this. It makes a joke of the field of membership system. We play it straight by the book on FOM with no games. I'm not against the live, work or pray FOM, but I am against donating $5 to some nonprofit to join a credit union. That's not in the spirit of our industry.
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