Skip to content
Midcoast FCU / Member Expulsion Policy

Member Expulsion Policy

This policy outlines the various actions, up to and including expulsion from membership, which Midcoast Federal Credit Union (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, 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.

Expulsion

Per the Credit Unions bylaws, the Credit Union may expel a member for cause with two-thirds vote of a quorum of the Board of Directors of the Credit Union.

Definitions

For the purposes of this policy, “cause” will use the following definitions:

  1. Cause – in the Credit Union Bylaws, “cause” means:
    a.  A substantial or repeated violation of the membership agreement of the Credit Union;
    b.  A substantial or repeated disruption, including dangerous or abusive behavior, to the operations of the Credit Union; or
    c.  Fraud, attempted fraud, or conviction of other illegal conduct in relation to the Credit Union, including the credit union’s employees conducting business on behalf of the Credit Union.
  2. Dangerous or abusive behavior includes:
    a.  Violence, intimidation, physical threats, harassment, or physical or verbal abuse of officials or employees of the Credit Union, members, or agents of the Credit Union
      i. This includes actions while on credit union premises or otherwise related to Credit Union activities, and through use of telephone, mail, email or other communication method;
      ii. Behavior that causes or threatens damage to credit union property; or
      iii. Unauthorized use or access of credit union property.
     

Notification to Expulsion Policy to all Members
The Credit Union will provide a copy of Article XIV of their bylaws or the Member Disclosure of Expulsion Policy as indicated in the Credit Union procedure to all members.
 
Communication to Member Subject to Expulsion
If a member is subject to expulsion, the member will be notified in writing of the basis for expulsion and the effective date of the expulsion. This notice will also include (at a minimum):

1. Relevant dates, sufficient detail for the member to understand the grounds for expulsion, the member’s right to appeal the expulsion to the Board of Directors, the process and procedures related to the appeal, and if applicable, a statement on the effect of expulsion related to the member’s accounts or loans at the Credit Union.

2. The notice must also tell the member that any complaints should be submitted to the NCUA’s Consumer Assistance Center if the complaint cannot be resolved directly with the Credit Union.
 
Appeal Process
1. The member has 60 calendar days from the date of receipt of notification of expulsion to request a hearing from the Board of Directors.  If the member does not request a hearing or provide a written submission, the member will be expelled at the end of the 60-day period after receipt of the notice.

2. The matter of expulsion will be placed on the agenda for the next regularly or specially scheduled meeting of the Board of Directors. The member will be given notice of the date and time of the appeal. The format of the meeting will be at the discretion of the Board of Directors.

3. The Board may affirm, disaffirm, or modify the action taken by the senior management official. The Board’s decision is final.

4. If the Board votes to expel the member, the member will be sent a letter, notifying the member of his or her expulsion and include all relevant information about member’s accounts or loans at the Credit Union.
 
Communication to Member after Expulsion
The communication to the member after they have been expelled must include:
1. Information on the effect of the expulsion, including information related to account access and any deductions by the Credit Union related to amounts due;

2. Notice that any complaints related to expulsions should be submitted to NCUA’s Consumer Assistance Center if the complaint cannot be resolved directly with the Credit Union; and

3. Notice that the member has an opportunity to request reinstatement.
 
Existing Member Obligations
Expelled members shall continue to be liable to the Credit Union for any outstanding amounts owed to the Credit Union. The Credit Union will ensure that state and federal law, consumer protection laws comply with Board of Director guidance.