Is the Proposed Cure Worse than the Ill? Commenters Mixed on Re-Incorporating FCU Bylaws
The credit union community and other interested parties are divided on how federal credit union bylaws should be enforced following an NCUA proposal to re-incorporate them by reference into regulation.
By Sarah Snell Cooke | August 28, 2007 at 08:00 PM | The original version of this story was published on Credit Union Times Magazine
ALEXANDRIA, Va. — The credit union community and other interested parties are divided on how federal credit union bylaws should be enforced following an NCUA proposal to re-incorporate them by reference into regulation.
While NAFCU shares the agency's concerns over member access to the courts, NCUA should not re-incorporate its bylaws into regulation at this time, the group recommended. According to NAFCU's comment letter, signed by Senior Vice President of Government Affairs Dan Berger, "NAFCU does not agree that federal regulation and oversight of bylaws disputes is appropriate at this time. NAFCU member credit unions have expressed concern that the involvement of the NCUA could result in various unintended consequences." For example, a small group of unhappy members of other antagonists could create undue hardship for the credit union.