DFCU Sues Michigan League For InterferingWith Conversion
DEARBORN, Mich. - (03/01/06) -- DFCU Financial said Tuesday it filedsuit in state court here against the Michigan CU League forinterfering with its controversial conversion to mutual savingsbank. In the suit, DFCU, the league's largest dues-payer, said itbelieves the league is attempting to use its employees, who alsohappen to be DFCU members, and league assets, to "improperlyinterfere with the business affairs of DFCU and its members." "Itis clearly inappropriate for the Michigan Credit Union League,which is funded by member institutions, of which DFCU is thelargest dues paying member, to interject itself between DFCU andits members and to interfere with the relationship between DFCU andits members," said Mark Shobe, president of the $1.8 billion creditunion. Shobe said once its member disclosures are approved by NCUA,expected as soon as Wednesday, the credit union plans to make surethat members are fully and fairly informed on the controversialcharter switch. DFCU representatives say the league's fingerprintsare all over a newly formed member organization, called DFCU OwnersUnited, that is preparing a campaign opposing the conversion.League officials could not be reached for comment lastnight.