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NAFCU voices support for CUGMA, Fair Hiring in Banking Act ahead of markup
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the House Financial Services Committee ahead of its markup of several important bills, including the Credit Union Governance Modernization Act (CUGMA) – NAFCU-sought legislation that would modernize the Federal Credit Union (FCU) Act’s provisions related to member expulsion in order to keep credit unions, their members, and staff safe from illicit behavior.
The association has consistently championed for less burdensome expulsion regulations to make it easier for credit unions to expel members who are engaging in fraudulent or illegal activities or conducting physical or verbal abuse.
In the letter, Thaler detailed NAFCU-member credit union experiences that highlight the need for "timely legislation [that] will help provide urgently needed relief to credit unions who are constrained in their efforts to remove dangerous and threatening members from their institution by outdated provisions of the Federal Credit Union Act."
"Allowing credit unions to adopt a streamlined expulsion process, while still protecting member rights, will have an immediate and positive impact on the credit union industry," wrote Thaler. "The managers’ amendment offered by Representatives Emmer and Perlmutter strikes the appropriate balance to do so. It will also serve to better protect credit union staff and other members of the institution from having to interact with those who would pose a threat."
In addition, Thaler expressed support for the Fair Hiring in Banking Act, which would replace a lifetime ban for those with disqualifying convictions to work in the banking sector and create an exception for criminal acts committed before the age of 21.
NAFCU will monitor today's markup and keep credit unions up-to-date on this topic via NAFCU Today.