Benefits of Credit Union Membership
The Credit Union National Association's (CUNA) state-by-state report on the financial benefits of credit union membership.
CUNA's Crisis Planning Tool
Your customized analysis of the NCUA Prompt Corrective Action Regulation, Proposed Risk-based Net Worth Requirement, and Complex Credit Union Calculation.
Regulatory Burden Study
With the support of state credit union Leagues, CUNA commissioned Cornerstone Advisors to perform an updated rigorous analysis of the current financial impact of regulation on credit unions, and how much it has changed over the last several years. The study found that the combined effect of increased costs and reduced revenues due to regulation amounted to at least $6.1 billion in financial impact to credit unions, including $614 million in Virginia.
Credit Union Profile
Your League's quarterly report on the credit union system and its financial performance, with detailed report on the Commonwealth's credit unions.
CUNA’s Economic Update
CUNA Economic Update videos provide 15-minute monthly overviews of the economy and its impact on credit unions.
CUNA's Environmental Scan
CUNA E-Scan combines trends across industries, expert analysis and forecasting data to provide strategic planning guidance for credit union professionals. The insights in CUNA E-Scan are organized into 10 trend-based chapters that provide actionable insights from industry experts and practitioners, so you can make timely, future-focused decisions that keep your credit union agile and ready to meet member needs.
CUNA Mutual Group’s Credit Union Trends Report
The Credit Union Trends Report is a monthly "pulse check" on the state of the credit union marketplace, often placed in a historical context.
NCUA's Credit Union Analysis
NCUA’s economists and analysts spotlight the credit union system’s financial performance, merger activity, changes in credit union chartering and fields-of-membership, as well as broader economic trends you should track.
Requiring Employee Vaccinations (August 2021)
The Equal Employment Opportunity Commission (EEOC) has issued guidance stating that employers are allowed to mandate COVID-19 vaccinations for in-person employees (barring medical or religious reasons), but it can be a sensitive issue.
Labor Shortage Leads To Currency Shipment Delays (August 2021)
Similar to other supply disruptions that became widespread in 2020, some armored car companies are now struggling with a labor shortage. Many credit unions have reported currency shipment delays and fear running short on currency at some branch and/or ATM locations. Credit unions should be proactive and develop a contingency plan?
Automated Teller Machine “Smash and Grab” Attacks on the Rise (July 2021)
Over the past year, financial intuitions -including credit unions across the country -have reported Automated Tell er Machine (ATM) “smash and grab” crimes. These aggressive attacks are comprised of several common traits where the perpetrators typically use stolen heavy-duty trucks with chains or construction-type vehicles to rip apart the ATM and gain access to cash canisters.
Telephone Consumer Protection Act (TCPA) Risk Overview (July 2021)
The Telephone Consumer Protection Act (TCPA), enacted in 1991 by the Federal Communications Commission (FCC), in large part to protect consumers from intrusive telemarketers, has emerged as a class-action lawsuit and litigation trend. With heightened focus on TCPA violations, credit unions should understand the TCPA requirements and ensure compliance to minimize risks.
Minimizing Negative Staff Impact When Getting Back To The Office (June 2021)
Similar to when employees began working remotely, there are peripheral issues and concerns to consider as a larger percentage of the staff return to the office. One recent poll suggests nearly half of the workers feel anxious about their own health, mental well-being, and the health of their families when going back to the workplace. As with all workplace safety and health efforts, staying safe will be the combined effort of employers taking the right steps to reduce risk, remain flexible if possible, and maintain strong communications with employees.
Overdraft / NSF Fee Lawsuits Continue (June 2021)
Several law firms continue to send demand letters threatening a lawsuit and/or file a lawsuit against credit unions alleging members were improperly assessed overdraft and/or NSF fees. These cases surged in 2019 and show no signs of slowing down as plaintiff attorneys continue to aggressively seek potential clients. It is believed plaintiff attorneys continue to troll credit union websites searching for account agreements that do not adequately disclose how and when overdraft and/or NSF fees are assessed.
Know Whether Excise Tax Final Regs Will Affect Your Credit Union (June 2021)
The IRS’s final regulations for the 21% excise tax levied against credit unions based on the income of certain highly compensated employees have been in place since January 2021. The IRS actually began to levy this tax in 2018, after it was included in the Tax Cuts and Jobs Act of 2017. Even if your credit union hasn’t been affected by the tax so far, it’s a good idea to know how it works, including some key changes and clarifications contained in the final regulations.
Credit Unions Receive Letters Suggesting Patent Infringement (May 2021)
Several credit unions have received letters from counsel representing BioCrypt Access LLC (BioCrypt) suggesting they may be infringing on patents that cover many applications and devices in the biometric identification and access space. The letters refer to biometric technology used in credit union mobile / digital banking apps and seek a license for BioCrypt’s patent portfolio.
Is Your CU Taking Advantage of the Hot Housing Market? (May 2021)
The housing market was one of the few bright spots in 2020. In fact, sales of existing homes reached the highest level since December of 2006.1 Fueled by record-low interest rates and pent-up demand, pre-qualified first-time homebuyers had a hard time finding a house to purchase due to the shortage in inventory.
2 Smart Ways to Keep Members at the Center of Your Innovation Strategy (May 2021)
Credit unions promise to keep members at the center of everything they do. Yet, when it comes to innovation, living up to that promise can get a little tricky. That’s because credit unions are often at the mercy of a patchwork of technology partners, each with varying degrees of human-centricity.
Members Overestimate Cost of Life/AD&D and Underestimate the Need (April 2021)
Many of your credit union's members don't have the critical coverage that could protect the financial wellbeing of themselves or their loved ones, in the event of a tragic injury or death.
Pandemic Shines a Light on Need to Help Members with Investments (April 2021)
With many members struggling financially and facing uncertain futures, this is a time when future planning on retirement goals might be put off. However, now more than ever is when credit unions should be the trusted, go-to source to help members through this crisis.
Physicians’ PII Used In Loan Fraud Scam (March 2021)
A credit union in the Northeast received multiple fraudulent loan applications via online applications that appeared to originate from prominent physicians. The FBI is investigating and suspects an organized crime ring seeking to victimize physicians with high credit scores and substantial income.
Guidance for CUs: Planning for COVID Vaccinations (March 2021)
In some areas, employees already have access to vaccines to help protect them against COVID-19. Credit unions may choose to encourage employees to seek the COVID-19 vaccination in their community; however, you may want to stop short of requiring or mandating the COVID-19 vaccination as it is a matter of state or other applicable law. Credit unions should prepare, encourage the vaccination, and consider how the workplace may be impacted.
How CUs Can Attract the Fastest-Growing Homebuying Demographic in America (March 2021)
As we look to the ever-changing future credit unions face, it’s no surprise that lenders are shifting their attention to diversity when it comes to their products, services, employees and members. With nearly 60 million Hispanics living in the US, many credit unions are focusing on strategies that make homeownership a possibility for their growing number of Hispanic members who want to achieve the American dream.
The Digitalization of Commercial Lending (March 2021)
Commercial lending is a balance of risk and reward. When properly managed, this business line can significantly expand a credit union’s community impact. Part of that management edge is achieved by employing a digital strategy specifically tailored to match your credit union’s commercial lending vision.
Counterfeit Corporate Checks Reported (February 2021)
Virginia-based InFirst Federal Credit Union reports the counterfeiting of its corporate checks.
Foreign Transaction Fees Cause Litigation Concerns (February 2021)
Plaintiff attorneys are pursuing class action litigation against some credit unions involving foreign transaction fees being assessed on debit cards. These complaints allege the credit unions' disclosures are misleading by stating that foreign transaction fees will be assessed when the transactions are “made” in foreign countries; however, the member is actually located in the U.S. and the merchant is located in a foreign country.
Risk Alert: Preparing For Deepfakes (February 2021)
Deepfakes are digitally altered images, videos or audio recordings that through the use of certain technologies, can make it appear an individual said, or did something they didn't actually do. Initially used to impersonate politicians, celebrities, and other well-known individuals, a much more concerning use has been emerging. As the technology has become increasingly? available to fraudsters and other bad actors, deepfakes are being used for fraudulent financial gain.
Don’t Let Data Walk Out the Door (January 2021)
An often-overlooked avenue for losing data is when a credit union doesn’t properly sanitize IT equipment before repurposing, recycling, or retiring it. During CUNA Mutual Group’s risk consultations, it is somewhat common that credit unions share they do not have a formal written policy/procedure in place or know if one is consistently followed for sanitizing and destroying equipment at the end of its useful life. This can open the door for data to be inappropriately accessed.
New Twist to the Zelle Fraud Scam (January 2021)
Fraudsters continue to target members of credit unions offering Zelle by using a sophisticated scam to defeat 2-step authentication (also referred to as out-of-band authentication), which leverages the use of one-time passcodes. In a new twist to this scam, fraudsters are defeating out-of-band authentication with transaction details, which Zelle introduced to help curb the fraud.
Employer Options as FFCRA Expires (January 2021)
The Family First Coronavirus Response Act (FFCRA) expired on December 31, 2020; however, eligible employers who voluntarily provide paid leave after this date will continue to receive tax credits thru March 31, 2021. As was previously determined, the requirement to provide Families First Coronavirus Response Act (FFCRA) leave applied only from April 1, 2020 thru December 31, 2020. The (FFCRA) required certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The only relief related to this as part of Stimulus 2.0 was the continuation of the tax credits thru March 31, 2021.
CUNA Mutual Group: Information on GAP Coverage Class Action Litigation (December 2020)
Recent class action litigation involves GAP that was sold by dealers on retail installment sales contracts (RISC) and then sold/assigned to credit unions and other lenders. The class action generally alleges that the lenders breached the terms of the GAP agreement by failing to refund the unearned GAP fee when the RISCs paid off early. It is important to understand that, in most states, GAP sold by dealers on RISCs generally follows a separate set of laws than GAP sold by credit unions on direct loans. While not at issue in the class action, other ancillary products may have refunding requirements as well.
Holidays and Pandemic Team Up to Enhance Fraud & Scams (November 2020)
As the holidays approach, e-commerce merchants are preparing for a continued increase in online sales as a result of store closures and restrictions due to the COVID-19 pandemic. Members should be aware of scams that target the convenience of online shopping such as fake or spoofed websites and pop-ups, e-skimming, porch pirates, or impersonations for your curb-side pick-ups.
Rise in Litigation for Failing to Refund Unearned GAP Premiums (November 2020)
There has been a recent increase in class action litigation directed toward indirect loans that were originated by automobile dealers on retail installment sales contracts (RISC). The allegations accuse creditors of failing to process refunds when a Guaranteed Asset Protection (GAP) Waiver terminates early, which may include:
- Loan payoff prior to maturity, including sale or trade of vehicle
- Repossession and disposition of vehicle
- Customer cancellation of the GAP Waiver
Why Investment Services Are Crucial to Your Members (November 2020)
We’ve known for some time that credit union members would prefer accessing financial services at a credit union. While more than half of members report that, only 3% of members utilize their credit unions for investment services. That’s according to research from Kehrer Bielan, sponsored by CUNA Brokerage Services, Inc. (CBSI). Now, during a time of global pandemic and economic uncertainty, it may seem counterintuitive to focus on investments. Members are struggling economically and face nerve-wracking uncertainty. But this is exactly when these services and strong financial planning need to be present and proactive within credit unions.
FinCEN Issues Advisory on Unemployment Insurance Fraud (November 2020)
The Financial Crimes Enforcement Network (FinCEN) recently issued an advisory (FIN-2020-A007) to alert financial institutions on the unemployment insurance fraud occurring during the pandemic. Credit unions across the country have assisted states in recovering unemployment insurance benefits that were fraudulently applied for by fraudsters.
Member HELOCs Used to Fund Counterfeit Checks (November 2020)
Credit unions have incurred large losses from counterfeit checks that draw funds from members’ home equity lines of credit (HELOCs), including counterfeit HELOC checks and counterfeit checks drawn on member checking accounts funded from unauthorized advances against member HELOCs. In many cases, fraudsters social engineered call center employees to request a canceled HELOC check or to order share drafts on member accounts.
Ransomware Attacks Extorting Sizeable Ransoms Not Letting Up (November 2020)
Security experts are reporting a potential increase in ransom attacks for the foreseeable future. As ransomware tools and deployment methods advance, criminal groups have launched more targeted attack campaigns resulting in increased paid ransom demands. Beazley reports ransomware claims increased 239% from 2018 to 2019, while the average ransom payment in Q2 2020 was $178,254, a 60% leap from Q1, according to Coveware. Access CUNA Mutual Group’s Ransomware & Cyber Threats Overview (UserID and Password required) for more info.
Election Drives CU Preparedness (October 2020)
Credit unions are preparing their organization, staff, and facilities amid the upcoming election. Voting-leave rights, social-political demonstrations, increased law presence, and business disruption are just a few questions being raised during these uncertain times. Carefully assess policies, locations, and potential vulnerabilities while also considering additional preventative measures for employee and workplace safety.
Mortgage Closings Targeted in Compromised Email Scams (October 2020)
Real estate loan closing funds are being targeted by fraudsters through compromised emails. The fraudsters are hacking title company and/or closing agent email accounts and sending “updated” wire transfer instruction resulting in losses. Title companies and closing agents for real estate transactions often use wire transfers to fund the closings and payoff existing mortgages due to the high dollar amounts. In recent losses, title company and closing agent email accounts are being hacked to look for upcoming real estate closing transactions.
Check Holds Not Used As Fraudsters Take Off With 6-Figure Amounts (October 2020)
Fraudulent deposit losses associated with new account scams are increasing at an alarming rate. Fraudsters either opened the new account with a fraudulent check or waited up to six months before depositing a fraudulent check. Savvy financial criminals frequently wait more than 30 days before making a fraudulent deposit, or they will make small deposits and withdrawals in the first month to establish a pattern.
The fraudulent checks have ranged from $1,000 up to $87,000. Unfortunately, check holds were not imposed in most cases, and the fraudsters were able to withdraw the funds immediately at another branch location, shared branch location, or through an ATM.
Emerging Risk: Changing Business Practices (October 2020)
The unprecedented pandemic event has required businesses, including credit unions, to close offices, implement a more remote workforce, increase reliance on digital products/service, and re-open offices. This has been uncharted territory for many decision-makers as you face more pervasive, complex challenges than ever before. CUNA Mutual Group has resources available to help you navigate this new reality.
Fraudulent Wire Transfers Generated From Email Scams (October 2020)
Cybercriminals have gone to great lengths throughout 2020 to commit theft or fraud by manipulating credit union executives, employees, and even business members using fake or doctored emails. The surge of business email compromise (BEC) and fraudulent instruction scams typically request large wire transfers. These urgent requests often exceed $1 million.
Class Action Lawsuits Again Swirl Around Collection Letter Deficiencies (September 2020)
Plaintiff attorneys continue to be successful with class action lawsuits against credit unions due to deficiencies in collection letters. Specifically, Notices of Intent to Sell Collateral that has been repossessed and Deficiency Notices sent after the collateral has been sold are the letters/notices targeted. Lack of detail in these notices is being scrutinized. These lawsuits have been going on for several years with credit unions being required to waive remaining deficiency balances, return payments toward deficiency balances, return 10% of the principal amount of the original debt, and pay statutory damages.
Credit / Debt Relief Scams On The Rise (September 2020)
There are reputable companies and organizations that can help negotiate concessions with creditors or set consumers up with a plan to pay down debts. However, scammers that guarantee to get you out of debt quickly and cleanly with an upfront payment are often illegal and on the rise. Even with legit companies, debt relief and credit relief carries considerable risk. Many firms instruct consumers to stop paying their debts, on the premise that creditors will negotiate a reduction.
Increase in Fair Credit Reporting Complaints May Lead to Increased Litigation
In April and May, the CFPB received approximately 42,400 and 44,100 complaints, respectively—the highest monthly complaint volumes in the Bureau’s history. The most common creditor violations of Fair Credit Reporting Act (FCRA) include:
- Creditors provide inaccurate financial information to reporting agencies
- Creditors fail to send notifications about credit report or score
- Creditors pull credit reports for an impermissible purpose
- Creditors utilize credit reports pulled for a permissible purpose to market or cross-sell additional products and services
The most recent issue impacting credit unions is based in the requirement to establish a permissible purpose before pulling a member’s individual credit report.
Keeping the Talent Pipeline Strong in Today’s Climate
Our focus on identifying and fostering talent in our industry cannot slow down. That means growing our talent pipeline and particularly growing the diversity of that pipeline.
Life After COVID-19; Proactive Loss Mitigation Strategies for Your Loan Portfolio
When thinking about the COVID-19 impact, look how credit union business adapted and shifted to meet the needs of employees and members. Consider the risks that credit unions also faced and continue to face under this “new normal." One significant risk, for example, is how the inherent risk of your loan portfolio - the largest earning asset of your credit union - has increased dramatically.
Meeting Members Where They Are: What Consumer Sentiment Data Tells Us About How to Serve Members
As we grapple with the ever-changing nature of the pandemic and the roller-coaster of information, it’s important that we pause and do our best to understand how consumer sentiment is also evolving. Doing so will help us best serve the members who need us more now than ever.
Business Changes Introduce New Robbery and Physical Security Threats (June 2020)
An increase in robberies across the country have occurred at drive-thru lanes, through ATM attacks, and within lobbies. In some instances, these acts are being conducted by criminals wearing masks - taking advantage of the use of face coverings by the general public to help reduce the spread of the Coronavirus. The increase in crime is likely due to difficult financial times and the additional opportunity to change the modus operandi with changes in credit union business operations.
Counterfeit Checks Fraud Alert - (June 2020)
Counterfeit cashier's checks and/or corporate checks that closely resemble credit union authentic checks have been presented for payment at financial institutions in connection with scams. Slight alterations in check color, check stock, logo, or location of key credit union check branding elements have been reported. In many cases, Routing & Transit Number (RTN) and MICR information are accurate.
CUNA Mutual Group Risk Alert: CUs Face New Threats of Lawsuits Related to Overdraft Fees (May 2020)
Plaintiff attorneys continue to send demand letters and/or file lawsuits against credit unions alleging improper assessment of overdraft and/or NSF fees. Reports of these cases are occurring at a faster rate than the past. Recent trends also show smaller credit unions are being targeted. Plaintiff attorneys pursue potential clients through websites and social media – some websites even identify specific financial institutions. They also search for member account agreements and other docs on CU websites. A Washington, D.C.-based law firm may be sending demand letters to area financial institutions.
Here are recent CUNA Mutual Group Risk Alerts related to overdrafts:
- Overdraft / NSF Fee Demand Letters and Lawsuits Continue (May 5, 2020)
- Spike in Overdraft / NSF Fee Demand Letters Witnessed By Credit Unions (Aug. 27, 2019)
- Overdraft / NSF Fee Lawsuits Again Target Credit Unions (April 4, 2019)
- Credit unions Face Overdraft Fee Lawsuits (July 18, 2018)
Civil Unrest & Riot Preparedness: An Essential Component of Safety
After a tumultuous beginning of 2020 with the COVID-19 pandemic, growing concerns over civil unrest manifesting into riots are alarming many credit unions. While having other types of safety processes and procedures in place are fairly common, many credit unions have not always accounted for or trained their employees on what to do in the event of a riot.
Sophisticated Social Engineering Scams Lead to P2P Fraud
Fraudsters are launching social engineering attacks to members by posing as the credit union to obtain online banking credentials. They are defeating out-of-band / 2-step authentication by scamming the member into providing this passcode to them. Once they have the passcode, they login to the member’s account and use peer-to-peer (P2P) services, such as Zelle and Payzur, to transfer funds elsewhere. Credit unions have reported losses ranging from $30,000 to $2 million due to this fraudulent activity.
Establishing Risk Tolerance in the Face of COVID-19 Ambiguity (May 2020)
As more of the COVID-19 impact and various government models for support have come into view, credit unions can allocate more time to strategic thinking around their plans for community support. With both snapshot and trending data, as well as qualitative insights from members and employees, leaders have more of the intelligence they need to establish an adjusted risk tolerance.
The Great Data Demand Facing Credit Union CFOs (May 2020)
As the number of business units demanding data-driven guidance grows, so too does the CFO’s need for highly consumable, real-time and accurate financial performance data.
Recent Ransomware Attack Validates Growing Trend Targeting Vendors
A major provider of automatic teller machines (ATMs) and payment technology, Diebold Nexdorf, recently suffered a ransomware attack that disrupted some corporate operations and services for over 100 of the company’s customers. While Diebold has determined that the spread of the malware has been contained, the attack validates a growing trend of third-party vendors being aggressively targeted by cybercriminals deploying ransomware in 2019, according to Beazley Breach Solutions.
Fraudsters Use Stolen Identities to File for Unemployment Benefits
Fraudsters from an international fraud ring have been using stolen identities to file for unemployment benefits in several states according to the Secret Service. The fraud network is believed to consist of hundreds of money mules creating potential losses in the hundreds of millions of dollars. Several credit unions have reported that members are receiving ACH deposits representing unemployment benefits –possibly after being recruited as money mules.
Data Privacy and Credit Unions: What to Expect in 2020 (February 2020)
In a changing digital world, many consumers continually weigh convenience and customized experiences with the privacy of their personal information. Consumers become accustomed to perks like scanning their loyalty card for an extra five dollars off. Simultaneously, they demand increased protection of their personal information and transparency over how the information is used. While today’s data privacy concerns generally target tech companies, these consumer calls may also impact credit unions where strict data privacy laws already drive action.
Credits Unions Use CDAs to Boost 'Cause Marketing' Partnership With CU4Kids (January 2020)
CUNA Mutual Group—in addition to its corporate and employee donations to CU4Kids—has been introducing credit unions to a relatively new funding mechanism, the “charitable donation account” (CDA). The NCUA allows certain investments within a CDA that have the potential to earn higher returns, with additional risks, than certificates of deposit and other typical credit union investments. CUNA Mutual Group helps credit unions analyze the different risks these investments present, and closely track the CDA’s performance.
Executive Orders and Vaccine Mandates (09/15/2021)
There was a flurry of activity from the Biden Administration on Sept. 9 regarding vaccine mandates among federal employees, federal contractors, and large employers (100+ employees). This article will bring you up to speed on the current state of the federal regulations, but there is no one-size-fits-all compliance solution.
Virginia employers face additional hurdles as the Safety and Health Codes Board, a subset of the Virginia Department of Labor & Industry, and Governor Northam finished their months-long public review of January’s Final Permanent Standard (FPS). The resulting revisions took effect on September 8, 2021.
CUNA/Leagues have been tracking overdraft-related suits and demand letters, which have evolved significantly over the past few years. "Overdraft litigation" is actually a convenient umbrella term for several different types of legal allegations and fact patterns. In fact, many of you may remember demand letters alleging mere "vagueness" in account agreement or improper re-sequencing of transactions.
Effective July 1, 2020 changes to the Code of Virginia will allow a state-chartered credit union to compensate members of the board of directors. While state law previously permitted compensating members of supervisory and credit committees, the bylaws of most credit unions prohibited the practice. Compensation of credit union officials requires that the board of directors adopt written policies, provided that annual compensation for an individual member does not exceed $6,000. Compensation is permissible, not required, and credit unions choosing to provide compensation will need to amend their bylaws accordingly. We have updated the standard bylaw template to reflect this option.
As you may know, the National Credit Union Administration issued a revised set of federal standard bylaws effective January 2, 2020. We have reviewed those changes and made a few additional edits to the Virginia document. We do not believe these changes are substantive, but some credit unions may find them relevant to their operations. Please note that the indemnification provision in Article XVII will only provide the maximum protection from liability if adopted by the members at an annual meeting (it is acceptable to present only Article XVII subject to member vote).
Credit unions may adopt bylaw amendments as provided in the articles of incorporation and bylaws of the institution. A copy of the amended bylaws should be sent to the Commission for their records. You are reminded that credit unions must continue to submit bylaw changes regarding field-of-membership (Article II) to the Commissioner for approval. Additionally, any changes to a credit union’s Articles of Incorporation still require submission to the clerk’s office of the State Corporation Commission. For example, Article I (Name) would require approval of the State Corporation Commission as it would be a change to the Articles of a Virginia non-stock corporation.
As a legal matter, a credit union’s bylaws must conform to, and cannot be inconsistent with, any provision of its charter, Code of Virginia Title 6.2 Chapter 13, or other laws or regulations applicable to the credit union’s operations. A general review of the standard bylaws has been performed by the League’s counsel, Hunton Andrews Kurth. However, you should consult your attorney when in doubt.
View the Virginia Code (new law effective July 1, 2020)
The Virginia Credit Union League provides the following basic recommendations for a credit union’s Board of Directors to consider when implementing a Compensation Policy for their credit union officials. The League makes no warranty as to the sufficiency of these guidelines as each credit union is responsible for adopting policies consistent with their governance practices.
Purpose: This policy details how directors (and/or committee members) are compensated for their contributions to the credit union.
Compensation philosophy: (Name of credit union) board of directors bears ultimate fiduciary responsibility for the credit union, protecting members’ interests and financial assets. To attract and retain the best officials (directors, committee members) possible, the board sets compensation at a rate to reflect the level of risk and responsibility taken, the professional expertise required and within the limits prescribed by the Code of Virginia.
Organizational relationship: Directors and committee members are defined by statute as non-employees. Pay to attend official credit union meetings or any compensation otherwise associated with performing duties required of the elected or appointed positions does not create an employee relationship. If paid, credit union officials are treated as independent contractors. Compensation will be reported as required by IRS on Form 1099-MISC.
Compensation structure: The credit union should develop their methodology for structuring the compensation of officials using one or more (or a combination thereof) of the options below. In no case should the total annual compensation for an individual member of the board or committee exceed $6,000 (current limit under state law – credit unions may establish a lower threshold).
- Officials may be paid a flat-fee annual retainer that compensates them for the meetings they attend (regardless of number and format, whether in-person, conference call, or virtual).
- Officials may be compensated based upon their positions. For example, the Board Chairperson or a Committee Chair may be compensated at a higher level. Additionally, compensation of board and committee members are independent decisions (i.e. a credit union is not obligated to pay all officials).
- Officials may be paid on a per meeting basis (attendance may be mandatory to receive the allotted compensation).
Payment of Compensation: The credit union should establish when officials are to be paid (ex. monthly, quarterly, semi-annual, annual) and establish a system of recordkeeping.
Disclosure of Compensation: The credit union will report compensation to officials as directed by state and federal law. (The Board may adopt additional reporting requirements if desired. Ex. Membership at the credit union’s annual meeting).
Related Policies: Health, accident, and term life insurance protection (if offered) for a director or committee member shall not be considered compensation. Directors and committee members, while on official business of the credit union, may be reimbursed for expenses consistent with Internal Revenue Service guidelines and such reimbursement will not count as compensation under this policy.
General Conditions: The Board of Directors will safeguard against payment of compensation that is excessive or could lead to material financial loss to the credit union. If the credit union falls below the required regulatory capital minimum, compensation to officials will be eliminated.
Authority: Compensation of officials is at the sole discretion of the Board of Directors. This policy does not convey an obligation or contract for payment. The Board may amend, suspend, or rescind this policy at any time without prior notice to any official. The board will not be discriminatory in its compensation practices.
Local Government Federal Credit Union, Civic Federal Credit Union, and the African-American Credit Union Coalition Launch 8th Cooperative Principle Microsite to Promote Diversity, Equity and Inclusion as Guiding Principles
Local Government Federal Credit Union (LGFCU), Civic Federal Credit Union and the African-American Credit Union Coalition (AACUC) have launched DEI Talks, a website to advocate for the proposed 8th Cooperative Principle that is focused on diversity, equity and inclusion (DEI). The Credit Unions and Coalition invite other credit unions and cooperatives to adopt the 8th Principle and demonstrate their support through the site. The site promotes DEI as an expansion of the philosophical tenets currently embraced by cooperatives globally. The values of diversity, or plurality as it is often understood outside of the U.S., equity and inclusion are ideologies already ingrained within the cooperative community. Credit Union and AACUC leaders believe It is past time to declare these as guiding principles.
CUNA’s research shows that credit unions that are intentionally financially inclusive grow memberships, loans, and assets faster, without harming portfolio quality. CUNA Vice President of Diversity, Equity and Inclusion Samira Salem was joined by other credit union leaders for a webinar Thursday on the business case for serving Latinx consumers.
Latinx in the U.S. are the fastest-growing racial or ethnic group, and half were unbanked or underbanked compared to one-third of whites in 2017.
The National Credit Union Administration is expanding the work it does to focus on financial inclusion efforts, a key priority for NCUA Chairman Rodney Hood.
In remarks Monday at the Hope Global Forum, Hood announced the launch of ACCESS, a new imitative from the agency focused on broadening the work NCUA and the wider industry do to bring consumers into the financial mainstream.
In an exclusive interview with Credit Union Journal announcing the program, Hood said that while helping vulnerable and marginalized communities has been a focus throughout his financial services career, the death of George Floyd and subsequent social-justice protests exacerbated the need for affordable financial services to help bring more consumers into the fold.
Virginia Credit Union League Signs on to CU Diversity, Equity, Inclusion Collective Pledge
The Virginia Credit Union League Board of Directors has voted unanimously to sign the Credit Union Diversity, Equity and Inclusion (DEI) Collective pledge, committing the League to meaningful and immediate action toward change by standing against racism and working to further social justice and financial democracy.
Read the news release.
- CUNA Mutual Group: Don’t Pause DEI
Global pandemic is reason to advance, not retreat, from DEI efforts.
- Life Happens at Work. Are Your Employees Discussing the George Floyd Tragedy?
Now is the time to create a strong future. Employers should take this conversation from a political “hot potato” and turn it into an effective training tool and conversation. Make your commitment, train your workforce on issues of harassment, discrimination, diversity, and implicit bias, and develop a plan for your workforce to come together. People want to work for businesses that value and include them.
- CUNA Diversity, Equity & Inclusion (DEI) eSchool
As the populations you serve and the employees who staff your credit union become more and more diverse, it’s important to have a strong understanding of what diversity, equity and inclusion (DEI) is and what that means for your organization. The CUNA eSchool will discuss what DEI is, why it is important for your credit union and how to implement practices to best serve the people who interact with your credit union.
- NCUA Chairman Hood Responds to Current Events Surrounding George Floyd
National Credit Union Administration (NCUA) Chairman Rodney E. Hood issued a statement reflecting on the death of George Floyd and current events.
- Incorporate DEI Into Your Strategic Planning From the Top Down
As the American population becomes more diverse, credit unions face new challenges and opportunities to serve members and attract the best talent in the industry.
- Thought Leadership: Why Diversity, Equity and Inclusion? Why Now?
Just over one year ago today, then Credit Union National Association (CUNA) chair Maurice R. Smith, president and CEO of Local Government Federal Credit Union in Raleigh, North Carolina, sparked a debate with his thoughts on the expansion of the Seven Cooperative Principles to include diversity and inclusion.
- Thought Leadership: Keeping DEI at Forefront Will Help CUs Fulfill Their Mission
The credit union movement was founded on the same principles of access and equality. These principles are at the core of what we do today, writes Laurie Baker, president/CEO of The Summit FCU, Rochester, N.Y.
- CUNA Board Passes Resolution Committing to Advance Equitable Service to Black Communities
The CUNA Board of Directors voted Thursday to pass a resolution in response to the national conversation surrounding the murder of George Floyd and the disparities faced by black Americans.
- Thought Leadership: Nussle Reacts to Murder of George Floyd, Nationwide Unrest
CUNA President/CEO reacted to the murder of George Floyd and the subsequent nationwide unrest.
- NCUA’s Hood: Inclusion Should Be ‘Major Priority’ in Financial Services
Financial services leaders should act on their support for diversity, equity and inclusion with a commitment to community building through financial inclusion, NCUA Chairman Rodney Hood wrote in the Wall Street Journal this week. Reflecting on the civil unrest around the country, Hood shared some of his own experiences and called on the financial system to do its part.
- Our Commitment to Diversity, Equity and Inclusion
We are committed to fostering a culture of diversity, equity, and inclusion within our organization.
- NCUA Chairman Hood Letter to Credit Unions Encouraging CUs to Take Diversity Self-Assessment
The diversity assessment is a valuable tool for credit unions seeking to make a stronger commitment to diversity, inclusion, and equity – it helps industry leaders to see areas in which they can strengthen that commitment, for the benefit of your employees, your members, and your communities.
- Keeping the Talent Pipeline Strong in Today’s Climate
Our focus on identifying and fostering talent in our industry cannot slow down. That means growing our talent pipeline and particularly growing the diversity of that pipeline.
As an affiliate of your League, you have access to a free hotline for compliance issues via the Woods Rogers Law Firm.
Contact the hotline at 800.552.4529 for answers to compliance questions, including those involving share accounts, loans, and supervisory issues.
As an affiliate of your League, you have access to a free hotline service for day-to-day human resource issues via the Woods Rogers Law Firm.
Contact the hotline at 800.552.4529 for answers to basic human resource management questions.
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