January 30, 2024
UFCW Community Credit Union strives to provide a safe and pleasant environment for members to conduct financial business and to protect the assets of the Credit Union. This environment also extends to our employees by ensuring their safety and that they are treated with respect.
This policy outlines the various actions, up to and including expulsion from membership, which the Credit Union may take in response to behavior that is illegal, threatening, abusive, or otherwise disruptive to credit union operations and/or any activity that causes a financial loss, is associated with fraud, and/or increased reputational or regulatory compliance risk to the Credit Union. Any suspension or limitation of service is subject to the discretion of appropriate management personnel.
This policy is not enacted to restrict the rights of membership, but rather to address certain unacceptable conduct and protect the Credit Union’s members, employees and property. The Credit Union reserves its right to expel a member pursuant to the Federal Credit Union Act.
CRITERIA FOR LIMITING SERVICES OR TERMINATION OF SERVICES
All members are entitled to maintain a single share (defined as the par value share or membership share) in the Credit Union and are eligible to attend, participate and vote at the annual and special meetings of the members and maintain a share account. No other access to products, services, or facilities is a right of membership. All such access may be reduced or limited at the discretion of the Credit Union.
Member services may be terminated, restricted, withdrawn, in whole or in part, for any of the following acts by the member:
Harassing another member, employee, or guest of the Credit union based on race, color, gender, ethnicity, age, religion, national origin, disability, ancestry, sexual orientation, gender identity, veteran status, genetic information, marital status, or any other characteristic protected by law. This includes any racial or ethnic slurs, any overt sexual conduct, flirtation, advances or abuse.
Presents a manner or situation that creates a potential health or safety risk for the Credit Union’s employees or members.
Offensive or abusive physical conduct.
The use of profane, abusive, intimidating or threatening language toward employees or fellow members.
Any fraudulent, dishonest or deceptive activity involving Credit Union employees or services.
Intimidating or attempting to coerce or interfere with Credit Union employees and the performance of their duties.
Posting, defacing or removing notices or signs on Credit Union premises.
Theft, destruction or misappropriation of Credit Union funds or property.
Any violations of Credit Union security procedures.
Possession, use or being under the influence of illegal drugs or alcoholic substances on Credit Union premises.
Fighting or possession of weapons of any kind on Credit Union premises.
Utilization of the Credit Union as a conduit to commit fraud.
Utilization of the Credit Union to deposit proceeds of any illegal activity.
Falsifying information on any official Credit Union document including membership or loan documents.
Having advance knowledge of a criminal act to be committed against the Credit Union and failing to report those acts to the Credit Union.
Being convicted of a felony or misdemeanor that involves fraud or dishonesty in financial transactions conducted at the Credit Union.
Causing a monetary loss to the Credit Union due to a default by the member on an obligation to the Credit Union and the Credit Union determines that the continued use of specific services by the member will constitute an unacceptable risk of future loss.
Any behavior or conduct which is disruptive or detrimental to the Credit Union’s ability to conduct its business.
The above list is not all inclusive.
SERVICES
Management shall determine whether the actions of the member gives rise to the need to withdraw services to protect employees, members and/or the risk of future financial loss to the Credit Union and, if so, which services shall be withdrawn and under what circumstances, if any, the services should be restored to the member in the future. Management response shall bear a rational relationship to the offense giving rise to the withdrawal of services. The range of actions may include the following:
Denial of all services other than the right to maintain a deposit share account and the right to vote at annual and special meetings.
Denial of specific services to prevent the risk of loss from specific member activity
Denial of services that involve personal contact with Credit Union employees.
Denial of access to the Credit Union premises.
Taking any other action permitted by the applicable Federal or State laws or the Credit Union’s Bylaws.
NOTIFICATION TO MEMBER
The Credit Union will notify any member who violates this policy of the action being taken. This notification will be in writing and sent to the member. If the member objects, the member shall be instructed to put their objections in writing. Management shall review the letter and either (1) dismiss the objection as being without merit, or (2) reinstate the member’s services if the objection has merit. The Credit Union will advise the member in writing of the action being taken on the objection.
EXPULSION CRITERIA
EXPULSION BASED ON LOSS. A member who has caused the Credit Union a loss but has indicated to the Credit Union an intent to repay that loss in a manner that is acceptable to the Credit Union (in the discretion of management), and who is in fact following through with repayment arrangements, will not be expelled. The Credit Union manager (or delegate) will periodically determine which members satisfy the foregoing expulsion criteria.
Notification to Member of Expulsion Policy. The Credit Union will notify members who have caused the Credit Union a loss of the Credit Union’s expulsion policy and will provide such members with the opportunity (as deemed appropriate by Credit Union management) to indicate to the Credit Union their desire to pay their debts and to begin repayment.
Member’s Failure to Respond. The Credit Union manager will provide the Chairman of the Board of Directors a list of members who, after having been notified of their proposed expulsion, have failed to show the Credit Union their intent to repay their debt.
Special Meeting. The Chairman of the Board of Directors shall subsequently call a special meeting of the membership for the purpose of expelling such members, after they have been given the opportunity to be heard, in accordance with the procedures prescribed by the Bylaws of the Credit Union.
EXPULSION BASED ON NON-PARTICIPATION. A member who has failed to vote in annual Credit Union elections or failed to purchase shares from, obtain a loan from, or lend to the Credit Union may be deemed to be non-participatory and expelled from membership.
Notification to Member of Expulsion Policy. At least 30 days prior to the effective date, the Credit Union will mail to each member at their current address a copy of this policy. New members will be provided written notice of this policy prior to or upon applying for membership.
EXPULSION FOR CAUSE. If provided within the bylaws, the Credit Union may expel a member for cause with two-thirds vote of the Board if the Credit Union has provided a written copy of Article XIV of their bylaws or a copy of the standard disclosure notice to each member of the Credit Union. The Credit Union will follow the procedures for proper written notification requirements, timelines for hearings, meetings, and record retention. (Not provided in Bylaws).
MEMBER’S LIABILITY
Expelled members shall continue to be liable to the Credit Union for any outstanding amounts owed to the Credit Union.