New Rules on Member Expulsion & Other Impacts of the CU Modernization Act

Consequences-of-the-CU-Modernization-Act

Compliance Directors Human Resources Senior Management

On-Demand Webinar:

StreamedOct 16, 2023Duration90 minutes

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Take-away toolkit
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Did you know that members can now be expelled for cause?

Previously, FCUs could only expel a member by calling a special membership meeting and voting the member out. It was a difficult, cumbersome process. The good news is that it’s now easier to deal with abusive members. The downside is that under the new rule, FCUs must revisit and revise their entire process. This webinar will provide all the details.

AFTER THIS WEBINAR YOU’LL BE ABLE TO:

Appreciate new options for dealing with abusive members
Understand the new definition of “Member Not in Good Standing”
Adopt the new expulsion bylaw amendment
Offer a compliant notice of the policy change to your membership
Develop a more robust security program
Create consistent member expulsion procedures
Integrate record retention requirements

WEBINAR DETAILS

Member expulsion has always been a rare, extraordinary action to protect the credit union from abusive or violent members. Fortunately, the Credit Union Governance Modernization Act addressed the issue of abusive members and the NCUA recently developed a rule to enable FCUs to expel members for cause. While the new rule allows the board to expel a member with a simple vote, there are several important safeguards built into the process. The new rule strikes a balance between giving the credit union more flexibility for member expulsion and member rights to notice of a hearing and even an appeal.

Rather than just a routine bylaw amendment and a safe harbor notice, the recent rule requires credit unions to review their entire “Member in Good Standing” process and revise it. The new member expulsion power can be seen as another tool in the toolbox to deal with members who have failed to live up to their agreed-upon obligations. For example, there is a clear difference between a member who has caused the CU a financial loss and one who has exhibited abusive conduct towards staff. Does your program take this into consideration? Join credit union veteran David Reed as he breaks down the new expulsion rule and examines the potential benefits and landmines of the new process. This will no doubt be on the regulatory radar.

WHO SHOULD ATTEND?

This informative session is designed for senior executives, directors, managers, compliance staff, audit staff, fraud control personnel, security staff, and anyone involved with the governance process.

TAKE-AWAY TOOLKIT

Sample member expulsion process checklist
Sample “Member Not in Good Standing” policy
Regulatory guidance
Safe harbor bylaw amendment
Safe harbor member notice
Employee training log
Interactive quiz
PDF of slides and speaker’s contact info for follow-up questions
Attendance certificate provided to self-report CE credits

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your institution is prohibited. Print materials may be copied for eligible participants only.

TESTIMONIALS

"This was great to get information on the new changes and kept me interested."

- Ruth, Nebraska Energy Federal Credit Union

"This webinar--like many presented by Mr. Reed' s law firm as well as the CU Webinar Network--are great sources of information and they are great resources for regulatory compliance matters. Mahalo!"

- Mark, Hawaii Law Enforcement Federal Credit Union

Presented By

David A. Reed

Reed & Jolly, PLLC