Judge Denies DFCU Members Access To Conversion Records

DETROIT, Mich.–Plaintiffs in a lawsuit against DFCU Financial took a huge blow Friday when a judge denied their request for access to records related to their CU’s ill-fated conversion attempt and would not rule on its motion to force a special meeting for the purpose of a recall of the board. Longtime members Margaret Blohm, Ray Ward and Richard Sly sued their CU in an attempt to force the special meeting, gain access to records related to the conversion attempt, and keep the $1.8-billion financial institution from spending corporate funds to solicit members on its own behalf. At the heart of the lawsuit filed in the Wayne County 3rd Circuit Court, is the question as to who is responsible for enforcing a credit union’s bylaws. DFCU Owners United, in accordance with the credit union’s bylaws, submitted a petition with enough signatures on it to call the special meeting to recall the board, but the credit union has refused to hold the meeting. Without access to the CU’s records related to the conversion attempt, it will be difficult for the group to document any wrongdoing on the part of the current board members before voting in the board elections, set for Feb. 15. The members’ group that formed to oppose the conversion, DFCU Owners United, has put together a slate of candidates to run against the candidates that have been endorsed by the existing board.