Members Organize To Stop Giant CUConversion
PLANO, Texas - (04/28/05) -- A group of Community CU members hasbanded together to oppose the $1.4 billion credit union's proposedconversion to a bank, the largest credit union charter switch ever."Community Credit Union members are not being adequately informedabout what the conversion truly means to them," Mark Arnold, amember of the Coalition for Member Trust, told The Credit UnionJournal. Formation of the group comes after Tuesday night's annualmeeting for Community CU, where Texas CU League President DickEnsweiler, also a Community CU member, charged that members werenot provided adequate disclosures in the conversion documents,which never mentioned the word 'bank.' Arnold said his group seeksgreater disclosures. "Our goal is to provide a more completepicture for the members," he said. The group is planning anadvertising and grassroots campaign to educate members. Among thepoints the group wants to highlight about the proposed conversion:the loss of ownership and control of the institution, theconversion's effects on rates and fees, and how top executives areexpected to profit. The group has set up a website atmembertrust.org.