Webinar: New Rules on Member Expulsion & Other Impacts of the CU Modernization Act
October 16, 2023 3:00 pm - 4:30 pm
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
Presented By: David A. Reed, Reed & Jolly PLLC
Attorney, author, consultant, and nationally recognized trainer, David Reed is a partner in the law firm of Reed & Jolly, PLLC. He provides guidance to financial institutions on establishment and revision of policies and procedures, organizational compliance, collections, security, contractual agreements, regulatory matters, and corporate governance. His engaging speaking style has made him a nationwide lecturer on regulatory compliance, consumer lending, bankruptcy, and collections.
A former trial attorney and vice president and general counsel of a large regional financial institution, David is also a Certified Fraud Examiner. He is particularly known as an expert in the areas of operations, bankruptcy, and collections. He has trained state and federal examination staff on numerous issues, including BSA, ID theft red flags, SAFE Act, third-party contract management, and bankruptcy.