House Financial Services Committee members have proposed legislation that would allow credit unions to more easily expel members who engage in abusive or illegal behavior.
Introduced by Reps. Tom Emmer, R-Minn., and Ed Perlmutter, D-Colo., the legislation would improve existing language in the Federal Credit Union Act related to member expulsion in order to protect credit unions, members and employees.
The legislation would allow an appeal that would provide due process for the accused member. Currently, federal credit unions are required to hold a special vote and obtain two-thirds approval from all members in order to expel a member.
It would also provide parity with several state-chartered credit union models or standard bylaws, which often have a "for cause" provision or board-adopted policy for expulsion.
The National Association of Federally-Insured Credit Unions applauded the move.
"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. NAFCU strongly supports this bipartisan bill, and we will continue to advocate for Congress to pass these important reforms," Dan Berger, the group's president and CEO, said in a news release.
Emmer and Perlmutter introduced similar legislation last year, and a similar bill was introduced in the Senate.
