Thursday, March 6, 2014

Fort Knox Improperly Using an Association to Serve Anyone

ABA wrote National Credit Union Administration Chairman Debbie Matz that Fort Knox Federal Credit Union, Radcliff, Ky., is improperly using a third-party association to recruit members who would not otherwise qualify. Fort Knox FCU allows individuals who are otherwise ineligible to become members by simultaneously joining a consumer group at no charge.

“The addition of individuals through [the group] contradicts congressional intent that there needs to be a genuine affiliation between credit union members in order for credit unions to fulfill their public mission,” ABA said, adding that NCUA should “order Fort Knox to cease its advertising that allows individuals who are otherwise ineligible for membership to join the credit union.”

ABA also urged NCUA to prohibit all federal credit unions from using these practices to circumvent the common bond requirement for membership.

Read the letter.
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1 comment:

  1. AnonymousMarch 10, 2014 at 12:34 PM

    As a credit union CEO, I don't like it because it cheapens the credit union brand, but at least for now it's not against the regulations.

    ReplyDelete

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