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(From Credit Union Times) – Senators Tina Smith (D-Minn.) and Ben Sasse (R-Neb.) introduced a bipartisan bill last Thursday, the Credit Union Employee and Member Safety Act, which would update the process of expelling credit union members while improving credit union employee safety.
The bill, which was filed as an amendment to the Federal Credit Union Act, is a second attempt at similar legislation that was introduced in February 2020, but did not receive a vote and died during the previous congressional session.
Credit union trade organizations, NAFCU and CUNA, have been working with Minnesota and Nebraska credit union leagues to push this bill forward.
“NAFCU applauds Senators Tina Smith and Ben Sasse for introducing legislation that will bolster consumer protections at credit unions to defend their employees and their members from abusive, fraudulent, and criminal activity,” said NAFCU President/CEO Dan Berger.
“This bill is an important update of the federal credit union charter and prioritizes the safety of credit union members and the staff that serve them,” said Mark Cummins, President/CEO of the Minnesota Credit Union Network, in a statement released by CUNA. “We appreciate Senator Smith’s commitment to strengthening the security of Minnesota credit unions.”
In April, Reps. Tom Emmer (R-Minn.) and Ed Perlmutter (D-Colo.) introduced their version of the bill in the House of Representatives.
Current law requires a federal credit union to hold a vote of its entire membership before it can expel a member who engages in egregious, dangerous, or illegal conduct. The bill would update that process to broaden a credit union’s ability to expel members for cause.
In 2019, the NCUA adopted amendments to its credit union bylaws, but at the time, credit union officials said the changes regarding expulsion did not go far enough. And they said if legislative changes were necessary, the NCUA board should seek changes from Congress.
“Ensuring credit unions have the ability to address illegal activity or threatening behavior at their institutions is paramount so they can continue to safely and soundly serve their members and local communities,” said Berger.
“The safety and security of credit union employees and credit union members is paramount to Nebraska’s credit unions and therefore we strongly support the Credit Union Employee and Member Safety Act and urge its passage,” said Scott Sullivan, President/CEO of the Nebraska Credit Union League, in a statement released by CUNA.