Omnibus includes NAFCU-sought CUGMA, LIBOR legislation

Congressional leadership early Wednesday morning released the text of a massive fiscal omnibus spending bill, which includes 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 legislation was unanimously approved by the House Financial Services Committee in November.

“NAFCU applauds Congressional leadership for advancing the Credit Union Governance Modernization Act and commends Senators Tina Smith and Ben Sasse and Representatives Tom Emmer and Ed Perlmutter for their leadership on this issue and continued efforts to further protect credit unions,” said NAFCU Vice President of Legislative Affairs Brad Thaler. “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.

“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,” concluded Thaler.

The association has long advocated for less burdensome expulsion regulations to alleviate difficulty for credit unions expelling members who are engaging in fraudulent or illegal activities or conducting physical or verbal abuse.

 

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