Wednesday, January 4, 2017

Association Provides Backdoor to Navy FCU Membership

DepositAccounts.com is reporting that anyone can become a member of Navy Federal Credit Union (Vienna, VA), the country's largest credit union, by joining the San Diego Council of the Navy League.

Anyone can join the San Diego Council of the Navy League.

Information obtained via a Freedom of Information Act request discovered that the association was added to Navy FCU's field of membership as part of an emergency merger of United Services of America (USA) Federal Credit Union (San Diego, CA) on December 10, 2010.

Under an emergency merger, the field of membership of the merging credit union may be transferred intact to the continuing federal credit union without regard to any common bond restrictions.

However, according to National Credit Union Administration's regulation, the common bond characteristic of the continuing credit union in an emergency merger does not change.

This allows Navy FCU to maintain the fiction that it is a single common bond credit union.

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