The federal Credit Union Act is outdated and needs to be modernized, CUNA officials said Monday, in announcing a comprehensive effort to send a plan to Capitol Hill during the next Congress.
“It’s been about 20 years since the Credit Union Act has been updated,” said Ryan Donovan, CUNA’s chief advocacy officer. During that time, state laws governing credit unions have changed, as have federal banking laws.
CUNA’s Credit Union Powers Subcommittee has been examining the issue, he said, adding the association also has contacted member leagues and credit unions to determine areas of the law that are outdated.
He said, for example, the federal law prescribes when a credit union’s fiscal year begins, adding that some credit unions might want to have more flexibility in determining their fiscal years. He said that credit unions might want more flexibility in scheduling their board meetings than is allowed in federal law. And credit unions might want more power to expel abusive members.