RACINE, Wis. – Educators CU was ordered to divest its auto sales business over the next 18 months under an agreement reached between the credit union and a state regulator.
After the Wisconsin Automobile & Truck Dealers Association complained to the state Office of CUs the regulator ruled that the state credit union statute barred the $900 million institution from operating a used car lot and ordered Educators to shut it down. The auto trade group claimed that Educators' car sales business, including its used car lot at its branch in Sturtevant, put the credit union in competition with car dealers.
But after the credit union appealed the ruling, the state regulator agreed to give it until April 30, 2010--unless the law or regulations governing car sales by credit unions changes before then.
