Washington, D.C. - Today, Congressman Tom Emmer (MN-06), with the support of Congressman Ed Perlmutter (CO-07), introduced bipartisan legislation that updates credit union practices and improves employee and member safety. The Credit Union Governance Modernization Act updates the credit union member expulsion process while ensuring a fair procedure for reinstatement.
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. This can include physical damage to property, harassment, or threats. The Credit Union Governance Modernization Act broadens the ability to expel members for cause, allowing federal credit unions to remove members due to these flagrant actions.
“My home state of Minnesota has already taken steps to adopt a similar, important measure. It’s critical we make credit unions safer for both employees and their members. Our community financial institutions are already facing difficulties navigating burdensome regulations as they support their local neighborhoods and businesses, and we need to take steps to make their vital work easier. This nonpartisan legislation will ensure our main street credit unions have the tools to succeed,” said Congressman Emmer.
“As our credit unions and their employees help our communities and businesses recover from COVID-19 – this commonsense solution to securing their safety and security should be a top priority,” Emmer concluded.
“Credit unions in Colorado and across the country should have the ability to address threatening or illegal behavior when necessary,” said Congressman Perlmutter. “This bipartisan legislation makes important updates to ensure credit unions can streamline their process for expelling bad actors and keep their employees, members and communities safe.”
“NAFCU applauds Representatives Tom Emmer and Ed Perlmutter for introducing legislation that will help protect credit unions and their members from abusive, fraudulent, and criminal activity," said NAFCU President and CEO Dan Berger. “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.”
“Thanks to the bipartisan leadership of Reps. Perlmutter and Emmer on this important modernization of the Federal Credit Union Act,” said Credit Union National Association President and CEO Jim Nussle. “This legislation would allow credit unions the ability to protect members and employees, and we look forward to continued engagement on this and other policies to bring credit union governance into the 21st century."
"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 and CEO of the Minnesota Credit Union Network. "We appreciate Representative Emmer’s commitment to Minnesota credit unions."
“Mountain West Credit Union Association, which represents 119 credit unions and more than 3.4 million members in Arizona, Colorado and Wyoming, supports the Credit Union Governance Modernization Act,” said Scott Earl, President and CEO. “We are grateful to Representatives Perlmutter and Emmer for their efforts to improve member and employee safety as credit unions help our communities recover from COVID-19 stronger than before.”
Read the bill here.