Senators introduce bipartisan bill to better protect CUs, members

Senate Banking Committee members Tina Smith, D-Minn., and Ben Sasse, R-Neb., Thursday introduced a NAFCU-sought, bipartisan bill – the Credit Union Employee and Member Safety Act – that would improve existing language in the Federal Credit Union (FCU) Act related to expulsion in order to protect credit unions, members, and employees.

“NAFCU applauds Senators Tina Smith and Ben Sasse for introducing legislation that will bolster consumer protections at credit unions to defend their employees 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.”

Smith and Sasse also introduced the legislation last year; a similar bill has also been re-introduced in the House.

Currently, federal credit unions are required to hold a special vote and obtain two-thirds approval from all members in order to expel a member. The proposed legislation from Smith and Sasse would provide credit unions with flexibility and relief from unnecessary regulatory burden that puts the credit union, its members, and branch employees at risk.

 

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