OLYMPIA, Wash. – The credit unions’ traditional “once a member, always a member,” principle does not apply to members who have closed their accounts and are no longer within a credit union’s field of membership, according to a new legal guidance issued by the Washington Department of Financial Institutions.
For Washington state chartered credit unions to use the “once a member” principle it must be specified in the credit union’s bylaws and the credit union must specify requirements for remaining a member, such as maintaining a share account, the DFI said in the new guidance.
“The principle does not provide re-instatement for an individual after he terminated his membership with the credit union and no longer meets the field of membership requirements,” said the DFI.
