Community CU Told It Is Out Of Branch Network If It Converts To Mutual Bank
The Texas Credit Union Service Centers has decided that Community Credit Union will no longer participate in its shared branching network if it converts to a mutual savings bank, as it is attempting to do.
According to the Texas league, Community Credit Union has begun posting signs in its branches that it will discontinue shared branching services effective April 29. Similarly, other credit unions that are a part of the network are informing members that they, too, will be unable to use any of Community CU's branches.
The move is a significant decision for Texas Credit Union Service Centers; Community CU branches make up as much as one-third of the outlets in the network, according to one source.
This isn't the first time credit unions have faced the question of what to do with shared branches when a credit union converts to a bank. A spokesperson for Financial Service Centers Cooperative (FSCC) said that two West Coast CUs that are now banks have remained in the network. Under an agreement, the banks may not solicit credit union members for any services. The banks are also mystery-shopped at least monthly.
Calls to TCUSC and Community CU CEO Gary Base were not returned as of presstime.