NCUA Cites DFCU For Campaign To SaveDirectors

DEARBORN, Mich. - (04/28/06) -- NCUA has notified directors of DFCUFinancial that statements made on the credit union's website and inthousands of fliers distributed to members defending directorsagainst a member recall are inaccurate and the federal regulatordirected the DFCU Board to correct the statements. In a letter sentto all nine directors Wednesday, NCUA Region One Director MarkTriechel directed the board to "act immediately to correct theseinaccuracies," according to an NCUA source familiar with theletter. The letter refers to statements posted on a new websitepublished by the credit union at savedfcu.com that members' savingsmay be "in jeopardy," or that NCUA will take the $1.8 billioncredit union under conservatorship, if the proposed recall of thedirectors is successful. Members irate over the board's decision toconvert to a savings bank, since withdrawn, have petitioned theboard for a special meeting where they will vote to recall all ninedirectors. The credit union giant has launched a major campaign todefend the directors. DFCU officials would not return phone callsseeking comment.