NCUA Questions Vote at Lafayette FCU

KENSINGTON, Md. – NCUA has notified representatives of Lafayette FCU it has some concerns about the just-completed vote to convert the $330 million credit union, believed to be one of the closest votes ever for a credit union switch to bank. The credit union, which has been under intense opposition by a group of members who want to throw out the board over the loss of their credit union, has yet to disclose a vote count, though the management reported more than a week ago that members approved the charter switch. But in letters to the credit union’s supervisory board and its Washington attorney, Richard Garabedian, NCUA has questioned the voting process and the disclosures provided to members during the run-up to the December 16 special meeting where the 90-day ballot was culminated. One of the matters under review, according to Credit Union Journal sources familiar with the letters, is whether the credit union misled members when it told them it would not have to close branches inside federal offices for the Small Business Administration and Agency for Internal Development, its two main sponsor groups. Documents Lafayette filed with the Office of Thrift Supervision indicate because of security concerns the SBA Lafayette will have to close the SBA branch. NCUA has also raised questions about when the vote count ended; with some members saying they were told ballots could be mailed all the way until the day of the special meeting. The questions raised by NCUA will most likely extend the time it will take the federal regulator to certify the vote, as is required, at least past the January 2 deadline the credit union has promised its members.