Washington, D.C. - Today, Congressman Tom Emmer (MN-06) and Congressman Ed Perlmutter (CO-07) introduced legislation to update credit union practices and improve employee safety. The Credit Union Governance Modernization Act also simplifies the member expulsion process while ensuring a fair procedure process for reinstatement.
Currently, the law requires a federal credit union to hold a vote of its entire membership before it can expel a member who engages in egregious, sometimes dangerous or illegal conduct. This can include physical damage to property, harassment, or threats. The bill broadens the ability to expel members for cause, allowing federal credit unions to remove members due to these actions.
Rep. Emmer issued the following statement: “This effort already began in the state of Minnesota, and would make credit unions safer for both employees and members. When our community financial institutions are already facing difficulties navigating burdensome regulations as they support their local neighborhoods and businesses, we need to take steps to make their vital work easier. Safety is key, and this nonpartisan legislation will ensure our Main Street credit unions have the tools to succeed."
"This bipartisan legislation will improve the federal credit union charter and make credit unions safer for both employees and members,” said Rep. Ed Perlmutter. “If a member is engaged in fraudulent, abusive or dangerous activity, it puts employees and other members at risk. This will ensure credit unions have a more streamlined process for expelling bad actors and protecting their membership and staff."
"This bill is important to protect the safety and security of credit union employees, and is a much needed update to the federal credit union charter," said Mark Cummins, President & CEO of the Minnesota Credit Union Network. "We appreciate Representative Emmer’s commitment to Minnesota credit unions."
“NAFCU applauds Representatives Tom Emmer and Ed Perlmutter for introducing bipartisan legislation that will help protect credit unions and their members from abusive, fraudulent, and criminal activity," said NAFCU President and CEO Dan Berger. “Credit unions must have the ability to address those engaging in illegal or threatening behavior at their institutions to ensure they can safely and soundly serve their members and local communities. We appreciate both the House and Senate having introduced this NAFCU-sought legislation, and we will continue to advocate for Congress to pass these important reforms.”
"We thank Reps. Perlmutter and Emmer for their bipartisan leadership on this important modernization of the Federal Credit Union Act,” said Credit Union National Association President and CEO Jim Nussle. “We look forward to working to advancing this and other measures that bring credit union governance into the 21st century to better meet consumers’ needs."