Televised Senate Report Focuses On Charter Conversion Bid

Register now

The attempt to convert to a bank charter by DFCU Financial credit Union is the subject of the March televised Senate Report with State Sen. Ray Basham (D-Taylor).

The program is carried by Comcast Cable in the communities served by the credit union.

"If you belong to DFCU you might want to pay attention to this," Basham says in the 30-minute program where he interviews David Adams, president of the Michigan league. "We're talking about a radical change-changing from a credit union to a for-profit bank."

The report is being aired at the same time DFCU Financial Credit Union is preparing to put the conversion vote in front of its 165,000 members.

During the program Basham discusses the regulatory process and consumer impact related to credit union-to-bank conversions. Among the questions he poses: "Do the members benefit-not just the board?" "Who wins out of this?" "Is there insider enrichment?" "Shouldn't the membership be informed up-front and early on in the process?" "What can the members expect to happen next?"

Basham is a Ford Motor Co. retiree, who readily admits to being a long-time, loyal member of member of DFCU Financial.

"I never thought-ever-that I'd see the day that my credit union would want to become a bank," Basham said. "(I)t doesn't sound like they're struggling to survive. And all of a sudden, it seems like a few insiders want to expand their profit margins. And that's unfortunate."

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER