ALEXANDRIA, Va. – NCUA, which allows the suspension of services to members who cause a loss, said credit unions may suspend services in other cases as well, such as in the case of members who are abusive to employees or other members or who present a potential loss to the credit union.
In a new legal opinion issued to Fairmont FCU, NCUA said the Federal CU Act permits suspension of services to members as long as there is a rational basis. A rational basis, said NCUA, exists when there is a relationship between the risk to a credit union and the restriction of services.
NCUA has ruled in the past that a credit union may suspend services to members who cause a loss and has indicated it also may bar abusive members from the premises, but the new legal opinion expands on what is allowed for suspension of service policies.
Any suspension of services policy should be in writing and a credit union should make its membership aware of the policy before it is enforced against any individual, said NCUA. In addition, said the agency, certain federal laws, such as the Equal Credit Opportunity Act, may prevent credit unions from suspending services in some instances.
