The National Association of Federally-Insured Credit Unions (NAFCU) recently applauded Congressional inclusion of the Credit Union Governance Modernization Act (CUGMA) in the fiscal omnibus spending bill.
“NAFCU applauds Congressional leadership for advancing the Credit Union Governance Modernization Act and commends Sens. Tina Smith and Ben Sasse and Reps. Tom Emmer and Ed Perlmutter for their leadership on this issue and continued efforts to further protect credit unions,” NAFCU Vice President of Legislative Affairs Brad Thaler said. “This important legislation will ensure safeguards for credit unions dealing with members who engage in illicit activity that endangers credit union staff and members by allowing federal credit unions establish procedures for expelling members, rather than requiring a member vote.”
The House of Representatives has advanced the $1.5 trillion omnibus spending measure as a means of keeping the government open and federal agencies funded for the remainder of the fiscal year. The bill is being considered by the Senate.
The NAFCU noted the CUGMA modernizes Federal Credit Union (FCU) Act’s provisions regarding member expulsion to keep credit unions, their members, and staff safe from illicit behavior.
“NAFCU and our credit union members have pushed hard to advance this bill that provides fundamental reforms for the credit union expulsion process we stand ready to help enact this legislation,” Thaler said.
The NAFCU indicated the organization has been advocating less burdensome expulsion regulations to address the difficulty credit unions experience in expelling members engaging in fraudulent or illegal activities or conducting physical or verbal abuse.