WASHINGTON–The American Bankers Association has sent a letter to NCUA stating that Sussex County FCU in Seaford, Del. must stop “abusive field of membership practices” that allow individuals who are otherwise ineligible for membership to join through the credit union’s foundation.
The ABA told NCUA that Sussex County FCU’s website states that individuals can qualify for membership by joining the SCFCU Foundation and then paying $10 a year in dues. “The website further states that individuals ‘need not remain a member of the Foundation to retain credit union membership,’” the ABA said.
According to the ABA Banking Journal, the trade group is “currently pushing back against a recent NCUA proposal that would expand the already loose fields of membership from which federal credit unions can draw their customers.”
In addition, the ABA said it “continues to closely monitor and report abusive membership practices by credit unions.”