DFCU Owners United, a group of members seeking to oust the board at DFCU Financial Credit Union, remained tight-lipped as The Credit Union Journal was going to press about any plans to take action against the CU, which refuses to hold a special meeting of members at which that board recall would occur.
DFCU Owners had earlier obtained sufficient member signatures for a special meeting as per the credit union's bylaws, but the board responded that such a recall would put the credit union at risk and said it will not hold the meeting. The recall was put into motion when the board of DFCU Financial sought to convert to a bank. That plan has since been withdrawn.
That has left DFCU Owners with no other choice than to pursue litigation, but representatives said they are unsure of what path will be pursued.
"I'm sorry that I have nothing to report yet,'' Margaret Blohm, representative of DFCU Owners United, told The Credit Union Journal at press time. "Let's just say that we are still pursuing all of our options.''
The National Center for Member Trust, another group organized by GTE FCU CEO Bucky Sebastian and which has raised more than a quarter-million dollars to oppose such charter conversions, has said it will provide funding if litigation is pursued.
Blohm said she could not confirm whether the group was negotiating with National Center for Member Trust. Blohm did say that contributions and comments from members supporting DFCU Owners United's continued efforts continued to trickle in late last week.
Meanwhile, CU officials posted excerpts on their website, www.savedfcu.com, quoting from testimony given by Laurie Stewart, CEO of Sound Community Bank of Seattle, which successfully converted from a CU to a mutual savings bank. "The NCUA' system creates a one-sided debate where conversion opponents are free to attack the credit union, its management and directors, while the credit union is unable to respond,'' she said during the hearing May 11 by the Subcommittee on Financial Institutions and Consumer Credit.
