ABA Calls out Delaware CU on Overreaching Membership Practices

In a letter to the National Credit Union Administration today, ABA said that the Seaford, Del.-based Sussex County Federal Credit Union must stop its “abusive field of membership practices” that allow individuals who are otherwise ineligible for membership to join through the credit union’s foundation.

According to the credit union’s website, individuals can qualify for membership by joining the SCFCU Foundation and 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.”

ABA 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, and the association continues to closely monitor and report abusive membership practices by credit unions.