Del-One FCU Seeks Congressional Fix for Statewide Chartering Limits

WASHINGTON – Del-One FCU, turned down twice for authority to serve the tiny state of Delaware, is lobbying Congress to amend the Federal CU Act to remove a bar on statewide charters. Duke Strosser, president of the $150 million credit union, he was prepared for the NCUA Board to reject his credit union’s application to serve all three of Delaware’s counties and the state’s 800,000 population, and he has discussing potential changes to the FCU Act with his state’s congressional delegation to ease that and other FOM restrictions. A recent change to NCUA rules also bars Del-One from adding underserved communities to his multiple group charter. He is shopping language to the lawmakers which would allow federally chartered credit unions to mix multiple groups with community charters, a so-called hybrid charter that is allowed in several states. His proposal would also remove the word “local” from the requirement for a community charter. NCUA Board ruled last week that the whole state of Delaware does not qualify as a “local” community, so does not qualify for a community charter, even though NCUA has awarded community charters for much larger populations, many more counties and broader geographic areas. “This thing ought to be in CURIA,” Strosser told The Credit Union Journal, of his FOM provision. “Of course, I have a situation that they can identify with.”