November 17, 2021

NAFCU-sought CUGMA advanced by House Financial Services Committee

CapitolThe House Financial Services Committee today voted to advance 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 bill now advances to the full House for consideration.  

“NAFCU applauds the House Financial Services Committee for advancing the Credit Union Governance Modernization Act and taking another positive step toward ensuring credit unions, their members, and staff are kept safe from harmful and subversive behavior,” said NAFCU Vice President of Legislative Affairs Brad Thaler. “This bill will establish better protections for credit unions dealing with members who engage in unlawful behavior by providing clearer expulsion regulations.

“NAFCU has consistently offered support for the advancement of this bill and essential reforms for the credit union expulsion process and we look forward to working with Congress to finalize this legislation,” Thaler concluded.

The association has consistently championed for less burdensome expulsion regulations to make it easier for credit unions to expel members who are engaging in fraudulent or illegal activities or conducting physical or verbal abuse.

Ahead of Tuesday's markup of the bill, Thaler wrote to the committee to highlight the need for "timely legislation [that] will help provide urgently needed relief to credit unions who are constrained in their efforts to remove dangerous and threatening members from their institution by outdated provisions of the Federal Credit Union Act." Read Thaler’s full letter.

NAFCU will keep credit unions up-to-date on the movement of the bill via NAFCU Today.